Amazon hired 628,000 people — but it's still short staffed. And labor and supply chain challenges are costing Amazon billions of dollars:
Amazon.com Inc. says it added 628,000 workers globally over the past 18 months, but labor continues to hamper the company’s efforts to meet demand.
The supply chain bottlenecks and labor squeeze forced changes to Amazon’s normally methodical fulfillment system, demonstrating that even one of the largest and most efficient companies in the world faces high hurdles to overcome extraordinary global circumstances. One area where the company says it hasn’t fallen short is in real estate to handle the huge volume of products and services the company provides.
“Our teams have been hard at work for months, focusing on capacity and demand planning to balance our customers’ needs against any supply chain or transportation challenges that may occur,” the post says. “With the recently emerging labor shortage in the US, the company is increasingly spending more to add workers, and called out an incremental $2 billion costs from wage inflation, and labor-related productivity losses in 3Q21, particularly in August and September,” Truist analysts wrote in a note.
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