Amazon faces labor crunch which hinders one day delivery
Amazon.com Inc’s one day delivery plan is now being hindered due to labor shortage in Prime loyalty club. Seattle-based Amazon expected to receive $4billion after the inclusion of additional labor and other expenses during the fourth quarter and in the midst of pandemic, the company faced hard times, it was difficult to hire warehouse workers and drivers to deliver the packages to other warehouses.
Amazon Chief Financial Officer Brian Olsavsky said, "We have unfinished business on the one-day-promise side. We were ramping that up nicely in 2019 and in the first quarter of 2020 before the pandemic," he said, referring to one-day shipping. "We're still not back to levels that we saw pre-pandemic."
Michael Pachter, an analyst at Wedbush Securities said, "Their sales are in population centers, which by and large means they're having to pay competitive wages”. "They really can't control it. The model is, order on Amazon and you're going to get it soon."
Retail industry is suffering from labor shortage especially the restaurants, entertainment venues and stores. Amazon had earlier mentioned that it had plans to add 150,000 seasonal jobs in the U.S.