Amazon posts a $3.2 billion profit as it goes through multiple rounds of layoffs

() — Amazon is starting the year in the black again.

The e-commerce giant reported a first-quarter profit of $3.2 billion on Thursday, compared with a loss of $3.8 billion in the year-ago quarter, and far topped analysts’ estimates.

The turnaround for profit comes as Amazon stepped up its cost-cutting measures in recent months. The company has announced two rounds of layoffs, canceled products and rejected physical store expansions.

It also comes as key areas of Amazon’s business continue to grow despite lingering recession fears, potentially hurting business and consumer spending.

In this image, packages are seen ready for delivery during Cyber ​​Monday, at Amazon’s fulfillment center in Robbinsville Township, New Jersey, on November 28, 2022. (Credit: Eduardo Muñoz/Reuters)

The company’s revenues increased 9% during the quarter from a year ago. Amazon expects second-quarter net sales to grow 5% to 10% over the same period a year ago, or $127 billion to $133 billion.

“The results indicate that ongoing cost-cutting measures are having a positive impact on Amazon’s business prospects,” said Jesse Cohen, a senior analyst at Investing.com. “Amazon’s strong second-quarter revenue guidance is another indicator that the company may be starting to come out of the woods.”

Amazon Web Services (AWS), which has long been a profit engine for the company, also saw double-digit percentage growth during the quarter, in another positive sign for its overall business.

AWS segment sales increased 16% over the prior year to $21.4 billion. That comes after sales growth slowed in the previous quarter as cloud customers tightened their budgets amid uncertainty about the health of the economy.

“As our AWS business navigates more cautious spending companies in this macro environment, we continue to prioritize building long-term customer relationships,” CEO Andy Jassy said in a statement accompanying the earnings release. .