Amazon shares gained 12% as company begins cost-cutting review

Amazon.com Inc. shares jumped 12% as Chief Executive Officer Andy Jassy has begun to review costs of the corporation. It is a part of the programme aimed at streamlining the global e-commerce leader. 

According to Bloomberg News, as a part of its annual operating-plan review, Amazon’s leadership will focus on cutting expenses. Efforts to scrutinize costs are needed amid a slowing economy. The Wall Street Journal earlier reported that the company was already in the process of cost analysis. Some employers were asked to look for jobs in other Amazon divisions as their teams were closed. 

Amazon has freezed corporate hiring. It pauses hiring even in profitable divisions, such as the advertising division. 

The company's shares rose on the news. Upbeat inflation data that was released earlier had the same effect on Amazon securities. The U.S. consumer prices report that came out on Thursday beat forecasts, easing concerns about the Fed's aggressive policy.