Market Overview

Amazon Hiring 100,000 Workers To Meet Increased Demand As Coronavirus Forces Social Distancing

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Amazon Hiring 100,000 Workers To Meet Increased Demand As Coronavirus Forces Social Distancing

Amazon.com Inc. (NASDAQ: AMZN) is looking to add 100,000 new full-time and part-time workers in the United States in warehouses and delivery.

What Happened

The e-commerce giant is attempting to meet the rising demand for online deliveries due to the novel coronavirus (COVID-19) outbreak.

"We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year," Amazon senior vice president of worldwide operations Dave Clark said in a statement.

"Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues."

Clark added that the workers who have lost their jobs due to the coronavirus outbreak in sectors like hospitality, restaurants, and travel are encouraged to apply.

"We want those people to know we welcome them on our teams until things return to normal and their past employer is able to bring them back," he said.

Amazon also announced that it is increasing the pay of all its hourly workers in the U.S. by $2 through April.

The Seattle-based company will increase the pay of its workers in the United Kingdom by $2.45 (£2) and in certain European Union countries by $2.23 (€2).

Why It Matters

Amazon has been struggling to meet the rising demand for online deliveries. In a blog post on Saturday, the company said that it's out of stock on some "popular brands and items," especially household staples and deliveries are taking longer than usual.

President Donald Trump on Friday declared a national emergency to combat COVID-19, and a number of states are taking efforts at enabling social distancing among communities, including by shutting down businesses such as bars and restaurants.

A number of companies like Apple Inc. (NASDAQ: AAPL), Nike Inc. (NYSE: NKE), and Abercrombie & Fitch (NYSE: ANF) have shut down their retail stores for the coming weeks across the U.S.

Retailers including Walmart Inc. and Kroger Co. (NYSE: KR) have reduced store operating hours to restock products and sanitize the stores.

Price Action

Amazon's shares closed 5.37% lower at $1,689.15 on Monday. The shares traded 3.4% higher in the after-hours session at $1,746.89.

 

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