Amazon snaps up eight billion dollar loan in preparation of slowing growth

Marketplace giant Amazon has said it secured an eight billion dollar loan after reaching an agreement with certain lenders.

As revealed in a SEC filing, the company’s term loan will mature in 364 days, with an option to potentially extend for a further 364 days.

The proceeds will be used for “general corporate purposes”.

It comes as the company prepares itself for slower growth in the coming year, amid rising inflation and a decline in consumer confidence.

Speaking to Reuters, a spokesperson for Amazon said: “Given the uncertain macroeconomic environment, over the last few months we have used different financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs.”

While Amazon had already announced a series of workforce reductions in late 2022, the company reaffirmed its stance today after announcing 18,000 jobs would be cut overall.

CEO Andy Jassy cited “difficult economies” to the Guardian, adding that the layoffs would mostly impact the company’s brick-and-mortar stores and its PXT organisations, which handle human resources and other functions.

Towards the end of the third quarter, Amazon reported about 35 billion dollars in cash and cash equivalents, with a long-term debt of around 59 million dollars.