Amazon Secures $8 Billion Loan — Retail Bum

Amazon has secured an $8 billion term loan from certain lenders to fund its operations.

As per the terms of the deal, the loan will mature in a year, and Amazon will have the option to extend it for another 364 days.

The news follows a year of continued decline for the eCommerce giant, with its stock down by nearly half in 2022, resulting from a downward trend in spending among consumers and businesses and a strong U.S. dollar.

At the end of September 2022, Amazon had nearly $35 billion in cash and cash equivalents and $59 billion in long-term debt, Reuters reported.

The news comes less than two months after it was revealed that the company was planning to lay off as many as 10,000 workers by early 2023, equating to 3% of its corporate workforce.

The cuts are expected to impact organizations across the company, including its voice-assistant Alexa team, its retail division, and human resources.

The company’s corporate employees today represent less than 1% of its global workforce of more than 1.5 million, which is primarily composed of hourly workers.

Originally published at https://retailbum.com on January 4, 2023.