Here is a bit of good news for the rest of the retail industry: Amazon’s CEO Jeff Bezos believes that the mega-retailer will eventually go bankrupt.
What happened- Bankrupt:
Bezos held an all-hands meeting last week where he announced that the company’s end is inevitable, according to a report from CNBC, which received a recording of the meeting.
During the meeting, someone asked Bezos about Sears going bankrupt and what that meant for Amazon.
- “Amazon is not too big to fail … In fact, I predict one day Amazon will fail,” Bezos reportedly said.
- “Amazon will go bankrupt. If you look at large companies, their lifespans tend to be 30-plus years, not a hundred-plus years” Said Bezos.
- Bezos said it is important to delay the end as long as possible.
- “If we start to focus on ourselves, instead of focusing on our customers that will be the beginning of the end. … We have to try and delay that day for as long as possible,” he said.
Employees told CNBC they are worried about potential government regulation and antitrust violations.
- “It’s a fact that we’re a large company,” Bezos said in the meeting. “It’s reasonable for large institutions of any kind, whether it be companies or governments, to be scrutinized.”
Why it matters:
As Business Insider reported:
It’s unusual for a company’s chief executive to say the company will end well before its demise. It’s even odder since Bezos heads one of the most successful companies in the world.
Bigger picture: Amazon announced two new locations for its second headquarters this week. The new headquarters will lead to more than 50,000 new employees.
What misfortune event will bring down one of the greatest retail empires the world has ever seen?
Bezos doesn’t say. But he suggests that if the company ever switches its focus from its customers to its own internal desires that will spell doom for the e-commerce giant.
It is hard to imagine that the industry’s biggest disruptor and greatest success story over the past 20 years will ever go belly-up. But Bezos says the retailer is not immune to the eventual downturn every successful company must face.
But employees have good reasons to feel unsettled. Just last week, President Trump told Axios that his administration is looking into antitrust violations by Amazon.
Meanwhile, regulators in Europe opened an antitrust probe questioning Amazon‘s use of merchant data, and Japanese officials are also reportedly investigating the company over antitrust allegations.
At last week’s meeting, Bezos choose to have little fun with his answer on how Amazon can survive and thrive. He said that when looking to the types of companies that have made it the longest, they tend to sell a particular type of alcohol.
“Most of the companies that are multi-hundred year old companies are breweries,” he said with a laugh. “It’s very interesting — I’m not sure what that says about society.”(CNBC).