Bezos Talks Profitability and Subsidies

During a CNBC appearance on Wednesday, Jeff Bezos, the founder of Amazon, spoke about the end of subsidies for his company. Anchor Andrew Ross Sorkin pressed him on the issue, suggesting that Bezos should be doing more to support the project rather than laying off employees.

Andrew Ross Sorkin: There are many who say, “Jeff is super rich.” You refer to it as a public trust. How much do you care about that? Why fire people instead of subsidizing?

Jeff Bezos: It’s crucial for the company to become profitable and self-sustaining.

Sorkin: Is that really the case?

Bezos: Yes.

Sorkin: Some suggest it should be under a trust.

Bezos: Here’s why it matters: if people aren’t paying for what we offer, it’s simply not good enough. It’s like a poem that doesn’t rhyme. It has to be valuable, and payment shows that we’re providing a relevant service. Look at the New York Times; they’re profitable because they deliver what people want. We can achieve that too.

Since 2023, the Washington Post reportedly incurred around $250 million in losses. Following staff reductions in 2022, about 40% of employees were let go. Some wonder why layoffs are necessary when questions about support are raised.

When considering the New York Times, Bezos’s comparison seems questionable. They’ve shifted toward being an elite lifestyle publication, featuring a variety of content that includes puzzles and decorating tips. Meanwhile, hard news has taken a back seat.

Moreover, the Times appears dependent on a specific ideological subscriber base, affecting its credibility. The once-authoritative newspaper now seems to cater to certain narratives, raising concerns about its integrity.