Will The New York Times Piece Damage Amazon?

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On August 15, the New York Times published an
article
slamming e-commerce giant
Amazon.com, Inc.AMZN
for its unforgiving corporate culture. The piece describes in with anecdotal stories how employees are pushed to their limits in an environment that thrives on tension and inspires fear. The piece gained traction on social media and many customers said it was enough to stop them from using the service in the future. However, shares of Amazon are up 72.46 percent year-to-date, leading many to wonder just how much damage the article will do.
Bezos Strikes Back
Following the release of the article, Amazon CEO Jeff Bezos sent out
a staff memo
in which he asked employees to contact him directly if they'd received the kind of treatment the New York Times had described. He maintained that Amazon's culture is very different from what was depicted and said he was shocked by the stories told. Other current Amazon employees took to the internet in defense of Amazon, saying that the descriptions were inaccurate and that the company has been misrepresented.
Solid Performance
While the article may have temporarily tarnished Amazon's glow, the company's
solid performance in the second quarter
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is likely to overshadow complaints about management from an investors' perspective. In July the company released strong second quarter sales and impressive financials which suggest that Amazon is on an upward trajectory. From a money-making point of view, the article has done little hurt the retail giant's appeal.
Public Perception
In the social media age, public perception is a huge part of a company's success.
SeaWorld Entertainment Inc.
SEAS
lost a huge volume of customers after being slammed in the media for its treatment of orcas and Amazon similarly runs the risk of being known as a cruel company that treats its workers poorly, something that could deter shoppers from using the site. However, so far the fallout from the article appears to be minimal, with most expecting more outrageous comments from the 2016 Presidential hopefuls to redirect the public's attention in the coming days.
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