Amazon reports net loss of $2.7 billion for 2022

In a year that ended with drastic cost-cutting measures — from ending experimental projects to cutting 18,000 jobs — Amazon reported a net loss of $2.7 billion.

That’s compared with a net income of $33.4 billion in 2021.

Amazon has attributed losses to its investment in Rivian, an electric vehicle startup that has struggled with production delays and market upheaval. On Wednesday, Rivian said it was cutting 6% of its workforce, or about 840 jobs from its 14,000 staff count.

Amazon said its 2022 losses included a pretax valuation loss of $12.7 billion from its investment in Rivian. That’s compared with a pretax gain of $11.8 billion from the same investment in 2021.

Amazon’s net sales for 2022 increased 9% to $514 billion, compared with $469.8 billion in 2021. Excluding changes in foreign exchange rates, Amazon says net sales increased 13% year over year.

In the fourth quarter of 2022 — from October to December — Amazon’s reported net income decreased to $0.3 billion, or $0.03 per diluted share. That’s compared with net income of $14.3 billion, or $1.39 per diluted share, for the same quarter in 2021.

During the fourth quarter, Amazon said it faced a pretax valuation loss of $2.3 billion from its investment in Rivian. In the fourth quarter of 2021, it saw a $11.8 billion valuation gain from its investment.

Amazon’s operating income decreased to $2.7 billion in the fourth quarter this year, compared with $3.5 billion in the fourth quarter of 2021. That’s due in part, Amazon said, to estimated severance costs.

Amazon began to trim costs in October when it implemented a corporate hiring freeze for its stores business, the retail division that includes online and physical stores, its marketplace for third-party sellers and Amazon’s Prime subscription service. About a month later, it froze corporate hiring almost across the board. That hiring freeze remains in place.

Last fall, Amazon also began cutting back on several projects, including delivery robots, a virtual travel experience and a video device for kids. Amazon also parked its Treasure Truck, a fleet of roving vans that offer daily discounts, and ended AmazonSmile, a decade-old charitable program that let customers pick a charity to receive a donation from the company.

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