Amazon Moves to Secure Cash... 10 Trillion Won Credit Loan

[Asia Economy Reporter Minyoung Kim] Amazon, the largest e-commerce company in the United States, has secured liquidity worth approximately 10 trillion won following large-scale layoffs.

According to foreign media on the 3rd (local time), Amazon has agreed to secure an unsecured long-term credit loan worth 8 billion dollars (about 10.2 trillion won).

The loan term is 364 days with an additional 364-day extension option. Amazon plans to use this loan for general corporate operating purposes.

Amazon stated in a press release, "Considering the uncertain macroeconomic environment, we have utilized various financing options to support capital expenditures, debt repayment, corporate acquisitions, and capital needs necessary for company operations."

Amazon's stock price plunged about 50% last year amid concerns that growth would slow due to reduced spending by companies and consumers caused by inflation and the strong dollar.

Amazon has announced workforce reductions this year. A source revealed in November last year that the scale of layoffs could reach 10,000 employees.

As of September 30 last year, Amazon held cash and cash equivalents worth 35 billion dollars (about 44.6 trillion won), and long-term borrowings amounted to 59 billion dollars (about 75.1 trillion won).