Economy

Amazon will go bankrupt one day, CEO Jeff Bezos tells employees

Amazon will go bankrupt one day, CEO Jeff Bezos tells employees

Amazon will go bankrupt.

Bezos repeated the Amazon mantra that customer obsession is the key to prolonging the company's demise, CNBC reported. Based on their current performance, do you think Amazon will ever go bankrupt?

The CEO's words arrived just before Amazon announced the two locations-Long Island City, New York, and Crystal City, Virginia-for its second headquarters, dubbed HQ2. He further added that this can be achieved by the company to "obsess over customers"-something he has said in the past as well".

The CEO, who was speaking at a staff meeting last week, was responding to an employee question around what Bezos had learned from the bankruptcy of major North American retailers such as the 125-year-old department store Sears, which filed for bankruptcy in October.

The world's richest man in modern history, Bezos, made the surprising acknowledgement saying, "Amazon is not too big to fail ..."

Bezos added that Amazon's job was to delay failure for as long as possible by focusing on its customers.

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With the same scrutiny being lobbed at other tech powerhouses, specifically Facebook, CNBC said that Bezos believes Amazon shouldn't be bundled with its tech peers. It now has over 600,000 employees and a stock price that's quadrupled over the last five years. "We have to try and delay that day for as long as possible", he said.

CNBC managed to speak to some Amazon employees on condition of anonymity to find out what the biggest future concerns are for the company. "It's reasonable for large institutions of any kind, whether it be companies or governments, to be scrutinised".

An Amazon spokesperson didn't comment on the all-hands meeting.

If Bezos' 30-year rule bears any truth, the prospects for Amazon actually look pretty dire.

Last week, President Donald Trump told Axios that his administration is looking into Amazon's possible antitrust violations in the U.S. In the meantime, European regulators have already started an antitrust probe into Amazon's use of merchant data in EU countries.