Jeff Bezos, the CEO of Amazon, recently cautioned his employees that one day the company may experience a downfall and cease operations. Despite being a leading player in two divisions, Amazon is still subject to potential risks and uncertainties.
The company was first established in July 1954 under the name Cadabra in Washington but was later renamed Amazon a few years later and has recorded a thriving success since then.
Even though it was doubted during its early start-up days the company thrived excellently in the long run after continuous innovation and several improvements coupled with the founder's resilience and hard work. However, the founder's shocking prediction about the company crashing has left people wondering what exactly the CEO was talking about.
What Is The Main Reason Why Amazon May Have Crashed?
The billionaire was recorded in a meeting where he predicted that Amazon will eventually fail and go bankrupt. Despite this inevitability, he is making efforts to delay the event from happening, much to the surprise of many.
The response was triggered when an employee asked about Amazon's future in 2018 during a meeting in Seattle to draw lines to the rising bankruptcies of several retailers like Sears.
Bezos further explained that large companies' longevity is an average of 30 years plus span and is not up to 100 years. He pointed out that the only key to prolonging Amazon's life span was to become obsessed with the customers and not to become inward-focused, forgetting about the customers.
He concluded, "If we focus too much on ourselves instead of our customers, that will mark the beginning of the end of the company." We are trying to delay that day from coming for as long as possible."
Going Down The Memory Lane
Earlier in 2021, Jeff Bezos took a quick trip down memory lane when he shared a clip from a newspaper in 1999 where an article that doubted the durability of his company was published.
The head news of the article boldly stated that the theory behind Amazon.com Inc. was weak and was prone to fail.
Bezos, the business mogul, shared the post on Twitter, saying, "You can be open and listen to people, but do not allow anyone dictate or tell you who you are. This was just one of the several stories that tell us we are going to fail all the way.
Listen and be open, but don’t let anybody tell you who you are. This was just one of the many stories telling us all the ways we were going to fail. Today, Amazon is one of the world’s most successful companies and has revolutionized two entirely different industries. pic.twitter.com/MgMsQHwqZl— Jeff Bezos (@JeffBezos) October 11, 2021
The billionaire has always maintained a positive perspective about his business and refuses to limit Amazon through his mind as a local giant, and the company has stood out as a unique force.
But in 2022, the Amazon company encountered a sales slowdown after the pandemic. This made its profit go down the slope compared to the previous seasons, which inferred a challenging year for the company. As a reaction, Amazon came up with an intense restructuring effort, including plans to reduce its employees by 27,000.