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Amazon (AMZN) Boosts Hiring Drive to Meet Spike in Orders
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Amazon (AMZN - Free Report) is constantly striving to strengthen its workforce in a bid to enhance performance during the coronavirus-induced crisis. This is evident from its latest plans to hire more 75,000 workers.
Notably, all these people will be employed in positions ranging from warehouse workers to delivery drivers.
Further, Amazon is inviting workers who have lost their jobs in various sectors due to the coronavirus-induced economic shutdown period to join the company and help it in its operations.
We believe with more warehouse workers and delivery drivers, the e-commerce giant will be better positioned to meet the flurry of online orders it has been witnessing for past few weeks, on account of house-arrest situation led by rapidly spreading COVID-19 infection.
This will help the company in sustaining customer momentum during this challenging situation. This, in turn, will aid the stock in gaining shareholders’ confidence further.
Coming to the price performance, Amazon has returned 17.5% over a year, outperforming the industry’s rally of 6.2%.
Moreover, Amazon’s hiring spree is likely to provide it a competitive edge over the other retailers, which are trying to capitalize on the panic shopping spurred by the outbreak.
Retailers’ Hiring Drive
Retailers like Walmart (WMT - Free Report) and Kroger (KR - Free Report) are also expanding their workforce in order to address the surging consumer demand during this crisis situation.
Notably, Walmart is looking to temporarily hire 150,000 workers across its stores, clubs and distribution centers. In line with this, the company has already hired more than 100,000 new workers to meet the surging online orders and stock the shelves.
Kroger has also hired above 23,500 workers and intends to hire 20,000 workers more for its distribution centers and manufacturing units. Further, the company is trying to keep its store shelves stocked with these additional workers.
Hence, competition among the retailers is intensifying during this pandemic situation.
Amazon’s Strong Initiatives
Nevertheless, Amazon’s strengthening hiring drive and other strategies to manage the flurry of orders remain noteworthy.
The latest move is in addition to the company’s recent hiring of 100,000 warehouse and delivery employees.
Apart from this, Amazon partnered with ride-hailing company, Lyft (LYFT - Free Report) . Per the deal, Lyft has asked its drivers to consider job opportunities at Amazon as means of additional income. These comprise delivery drivers, warehouse and shopper jobs.
Further, it has recently announced that it is temporarily suspending its own delivery service, Amazon Shipping, starting June. This, in turn, will help the company to focus on its core delivery operations in this crisis scenario by allocating workers and drivers to the same.
In addition to these, the company is also investing heavily to promote the interests of its workers during this challenging situation. In order to hike worker wages, it is likely to spend $500 million, which is above the previous amount of $350 million.
All these endeavors are expected to help the company in driving workers momentum and delivering enhanced customer experience during the coronavirus pandemic.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Amazon (AMZN) Boosts Hiring Drive to Meet Spike in Orders
Amazon (AMZN - Free Report) is constantly striving to strengthen its workforce in a bid to enhance performance during the coronavirus-induced crisis. This is evident from its latest plans to hire more 75,000 workers.
Notably, all these people will be employed in positions ranging from warehouse workers to delivery drivers.
Further, Amazon is inviting workers who have lost their jobs in various sectors due to the coronavirus-induced economic shutdown period to join the company and help it in its operations.
We believe with more warehouse workers and delivery drivers, the e-commerce giant will be better positioned to meet the flurry of online orders it has been witnessing for past few weeks, on account of house-arrest situation led by rapidly spreading COVID-19 infection.
This will help the company in sustaining customer momentum during this challenging situation. This, in turn, will aid the stock in gaining shareholders’ confidence further.
Coming to the price performance, Amazon has returned 17.5% over a year, outperforming the industry’s rally of 6.2%.
Moreover, Amazon’s hiring spree is likely to provide it a competitive edge over the other retailers, which are trying to capitalize on the panic shopping spurred by the outbreak.
Retailers’ Hiring Drive
Retailers like Walmart (WMT - Free Report) and Kroger (KR - Free Report) are also expanding their workforce in order to address the surging consumer demand during this crisis situation.
Notably, Walmart is looking to temporarily hire 150,000 workers across its stores, clubs and distribution centers. In line with this, the company has already hired more than 100,000 new workers to meet the surging online orders and stock the shelves.
Kroger has also hired above 23,500 workers and intends to hire 20,000 workers more for its distribution centers and manufacturing units. Further, the company is trying to keep its store shelves stocked with these additional workers.
Hence, competition among the retailers is intensifying during this pandemic situation.
Amazon’s Strong Initiatives
Nevertheless, Amazon’s strengthening hiring drive and other strategies to manage the flurry of orders remain noteworthy.
The latest move is in addition to the company’s recent hiring of 100,000 warehouse and delivery employees.
Apart from this, Amazon partnered with ride-hailing company, Lyft (LYFT - Free Report) . Per the deal, Lyft has asked its drivers to consider job opportunities at Amazon as means of additional income. These comprise delivery drivers, warehouse and shopper jobs.
Further, it has recently announced that it is temporarily suspending its own delivery service, Amazon Shipping, starting June. This, in turn, will help the company to focus on its core delivery operations in this crisis scenario by allocating workers and drivers to the same.
In addition to these, the company is also investing heavily to promote the interests of its workers during this challenging situation. In order to hike worker wages, it is likely to spend $500 million, which is above the previous amount of $350 million.
All these endeavors are expected to help the company in driving workers momentum and delivering enhanced customer experience during the coronavirus pandemic.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>