Many business leaders have recently warned of difficult economic times, with new lay-offs and cost-cutting measures having been implemented in recent weeks. Jeff Bezos, Amazon's executive chairman, also spoke in an interview about the drastic downturn in the economy.

According to a Gallup survey, the economic confidence index fell to minus 45, the lowest since July. Just how much the world has changed in just two years is clearly shown by the fact that before the pandemic, the economic confidence index was plus 41 in February 2020. Gallup says the current low probably reflects fears of a recession next year.

Many leaders have recently warned of difficult economic times, with new lay-offs and cost-cutting measures coming into force in recent weeks. Jeff Bezos, Amazon’s executive chairman, also spoke in an interview about the drastic downturn in the economy.

“I don’t know whether we’re technically in a recession, economists argue over that and they have certain technical definitions. What I can tell you is the economy does not look great right now. Things are slowing down, you’re seeing layoffs, in many many sectors of the economy,

Mr Bezos said, adding that even if the country is not in recession now, it almost certainly will be in the near future. Therefore, „if you are going to make a purchase maybe slow down that purchase a little bit,” he said.

„If you’re an individual and you’re thinking about buying a new large-screen TV, maybe slow that down, keep that cash, see what happens, same thing with a refrigerator or a new car, whatever. Let’s take some risk off the table. If you’re a small business, maybe delay some capital purchases,”

Amazon’s executive advised. Mr Bezos also said that determining how long a recession will last is something that even „the most experienced economists in the world” could not answer and people just have to try and be reasonable in such an economic situation. „Hope for the best, but prepare for the worst,” he added.

In recent months, Amazon has shuttered its telehealth service, shut down all but one of its US call centres, closed under-performing chain stores, along with some warehouses, and has cancelled buying some new warehouses. In terms of recruitment, Amazon is freezing hiring new workforce. Amazon is far from alone, other tech giants, such as Meta and Alphabet, have also cut costs to offset the problems caused by the crisis. Companies across the technology sector have announced layoffs and headcount freezes, or significantly reduced their hiring targets for the coming months.