Eric Sheridan: Maybe I’ll ask one big picture of Andy and then just a housekeeping matter to Brian, if I can. Andy, keeping on this theme of sort of big picture and strategy and your perspective, I’d love to get your view on the international e-commerce businesses. Obviously, you’re in a range of geographies with a wide variance of maturity and different investment cycles. Can you give us your perspective on how you see Amazon’s global e-commerce footprint today? And how investors should be thinking about the mix of growth and margin evolution in those international businesses in the years ahead? And maybe, Brian, if I can just ask a quick follow-up. In the Q1 operating income guidance that you gave, I think there’s some confusion among investors as to where you might be capturing some of the restructuring charges from the announcements that the company has made on employee count between Q4 and Q1.
Can you just clarify what was captured in Q4 versus what might be included in the way you frame the Q1 operating income guidance?
Brian Olsavsky: Sure, let me start. This is Brian. Let me start with that second part. So as I said earlier, we took a $640 million charge tied to the position elimination that we announced in Q4. A lot of that fell into Q1 into mid to late January. So the way to think about it is for the terminations in January, the salaries for the first 3 weeks are covered in operating results for Q1. But the period after that, where there’s weeks or months of severance coverage, job placement, a lot of those costs are what the $640 million charge was in Q4. So I hope that helps.
Andrew Jassy: And on the question about international e-commerce, we’re very enthusiastic about the business we’re building there. I think just perspective, if you look at the compounded annual growth rate from 2019 to ’21, in the U.K., it was over 30%; in Germany, it was 26%; in Japan, it was 21%. And the fact that we haven’t given back that growth, and these are all net of FX, but if you look at even the last couple of quarters where we’re continuing to grow and we haven’t given back some of that growth, a meaningful amount of market segment share has shifted to our global established e-commerce territories, and we’re excited about that. Now we’re — at this stage, we’re big enough in our developed international territories that when there’s something significant happening in the macro, we’re going to be impacted as well.
And if you just look in Europe as an example, the inflation is higher than most places, and the impact on Europeans for the war in Ukraine is more significant, and also the energy prices and hikes there are more significant. So you can see that in some of our growth numbers. And then you look at our emerging countries, and these are — they’re all a little bit different in all — in a little bit different stage as you recognize in the question. But if you look at countries like India and Brazil and the Middle East and Africa and Turkey, Mexico and Australia and a number of those types of countries, we like what we’re seeing. They take a certain amount of time. There’s a certain amount of fixed investment you have to make when you enter a new geography, and then you have to drive a certain amount of revenue to be able to cover that fixed investment.
But they’re all on the right trajectory and following trajectories that roughly look like what we saw in North America and our established international geographies, and we think it’s the right investment and believe we’re going to have a large profitable international e-commerce business.
Operator: And the next question comes from the line of Justin Post with Bank of America.
