Amazon CEO says Prime Video could become 'standalone business,' stands by layoffs

Published Wed, Nov 30 20225:06 PM ESTUpdated Thu, Dec 1 20221:42 PM EST

Amazon (AMZN) could potentially spin off its Prime Video streaming unit as a separate company, CEO Andy Jassy said Wednesday. During a wide-ranging interview at The New York Times' DealBook Summit , Jassy said that "overtime we have opportunities to make our Prime video business a standalone business that has very attractive economics." Jassy also defended the Club holding's decision to "streamline" costs by laying off thousands of employees , highlighted shifts in consumer spending amid an uncertain economy, and made clear Amazon's intention to continue expanding into the health-care space. The Club welcomes Jassy's comments on reining in costs, as well as its measured approach to building out Prime. Layoffs and expenses Jassy said Amazon's recent decision to layoff roughly 10,000 workers is part of an effort to generate more efficiencies across the organization. But he said "it wasn't wrong to double down" by hiring more employees when business was booming during the height of the Covid-19 pandemic. Jassy said he had no regrets about the company's pandemic strategy, including the company's push to build out its infrastructure to meet burgeoning demand. At the same time, he acknowledged that when adding headcount it's important to consider any sudden changes that could arise, even when a business is performing well. Amazon, whose headcount ballooned during the pandemic, has seen growth slow as macroeconomic headwinds have mounted over the past year. Consumer trade down Growing economic uncertainty means consumers are more mindful about where they're putting their cash and increasingly looking for deals, Jassy said. "People care a lot about getting a bargain right now." He added that in discretionary categories like electronics, consumers are trading down to more economical models. "In difficult and uncertain economies, we found over time that consumers are very careful about who they choose to partner with, and they go with companies that are going to take good care of them and provide a great customer experience and that has always been something that we have focused very squarely on," Jassy said. Streaming Amazon's Prime Video, one of the fastest-growing streaming services, could be a standalone business one day, Jassy said. The unit has been bo