Amazon (AMZN) might doubtlessly spin off its Prime streaming unit as a separate firm, CEO Andy Jassy mentioned Wednesday. Throughout a wide-ranging interview on the The New York Instances’ DealBook Summit , Jassy mentioned that “time beyond regulation we’ve alternatives to make our Prime video enterprise a standalone enterprise that has very engaging economics.” Jassy additionally defended the Membership holding’s resolution to “streamline” prices by shedding hundreds of staff , highlighted shifts in shopper spending amid an unsure financial system, and made clear Amazon’s intention to proceed increasing into the health-care area. The Membership welcomes Jassy’s feedback on reining in prices, in addition to its measured strategy to constructing out Prime. Layoffs and bills Jassy mentioned Amazon’s latest resolution to layoff roughly 10,000 staff is a part of an effort to generate extra efficiencies throughout the group. However he mentioned “it wasn’t fallacious to double down” by hiring extra staff when enterprise was booming through the top of the Covid-19 pandemic. Jassy mentioned he had no regrets in regards to the firm’s pandemic technique, together with the corporate’s push to construct out its infrastructure to fulfill burgeoning demand. On the identical time, he acknowledged that when including headcount it is necessary to contemplate any sudden adjustments that might come up, even when a enterprise is performing nicely. Amazon, whose headcount ballooned through the pandemic, has seen development sluggish as macroeconomic headwinds have mounted over the previous 12 months. Client commerce down Rising financial uncertainty means shoppers are extra aware about the place they’re placing their money and more and more on the lookout for offers, Jassy mentioned. “Folks care rather a lot about getting a discount proper now.” He added that in discretionary classes like electronics, shoppers are buying and selling all the way down to extra economical fashions. “In troublesome and unsure economies, we discovered over time that customers are very cautious about who they select to associate with, and so they go together with corporations which might be going to take excellent care of them and supply an awesome buyer expertise and that has at all times been one thing that we’ve targeted very squarely on,” Jassy mentioned. Streaming Amazon’s Prime Video, one of many quickest rising streaming companies, could possibly be a standalone enterprise sooner or later, Jassy mentioned. The unit has been bolstered of late by its Thursday Night time Soccer broadcast and new Lord of the Rings collection. “Our Prime Video providing is a vital ingredient…more and more you see an increasing number of individuals signing as much as Prime due to the video content material,” he defined. Jassy mentioned Amazon will proceed to spend money on sports activities calling it a “distinctive” asset that drives Prime subscriptions. Amazon in healthcare Amazon is taking steps to construct out its nascent pharmacy enterprise, Jassy mentioned, a transfer that enhances the corporate’s mission of being a one-stop-shop the place prospects can discover any merchandise they need. “For a very long time our prospects wished us to have a pharmacy providing and we have constructed one thing there [but] we’re nonetheless within the relative early days,” he mentioned. On the identical time, Jassy mentioned the health-care system within the U.S. is in “dire want of being reinvented” and hopes Amazon may be part of that reform. Amazon in July introduced plans to accumulate main health-care supplier One Medical in a deal valued at $3.9 billion . Backside line It is optimistic to see Jassy acknowledge that Amazon is overstaffed and overbuilt on infrastructure. The inventory, which has declined greater than 42% year-to-date, sometimes responds favorably within the harvesting section fairly than the investing section, offering a glimmer of optimism for Amazon shares in 2023. In the meantime, Jassy’s feedback about shoppers attempting to stretch their {dollars} will not be a shock, given inflation has eaten into many U.S. discretionary budgets. Lastly, it is smart that Amazon needs to construct out Prime Video, and we’re happy to listen to they plan to take action in a disciplined method. (Jim Cramer’s Charitable Belief is lengthy AMZN . 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