{"id":359908,"date":"2021-10-29T22:23:00","date_gmt":"2021-10-29T19:23:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/amazon-hired-628000-people-but-is-still-short-staffed\/"},"modified":"2021-10-29T22:23:00","modified_gmt":"2021-10-29T19:23:00","slug":"amazon-hired-628000-people-but-is-still-short-staffed","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/amazon-hired-628000-people-but-is-still-short-staffed\/","title":{"rendered":"#: Amazon hired 628,000 people but is still short staffed"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37a6e353492\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37a6e353492\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/amazon-hired-628000-people-but-is-still-short-staffed\/#Amazon_like_companies_across_the_consumer_spectrum_is_facing_labor_and_supply_chain_challenges_thats_costing_the_e-commerce_giant_billions\" >Amazon, like companies across the consumer spectrum, is facing labor and supply chain challenges that\u2019s costing the e-commerce giant billions<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/amazon-hired-628000-people-but-is-still-short-staffed\/#Tonya_Garcia\" >Tonya Garcia<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#: Amazon hired 628,000 people but is still short staffed<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Amazon_like_companies_across_the_consumer_spectrum_is_facing_labor_and_supply_chain_challenges_thats_costing_the_e-commerce_giant_billions\"><\/span>\n  Amazon, like companies across the consumer spectrum, is facing labor and supply chain challenges that\u2019s costing the e-commerce giant billions<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000466330\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000466330\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Amazon.com Inc. says it added 628,000 workers globally over the past 18 months, but labor continues to hamper the company\u2019s efforts to meet demand.<\/p>\n<p> The e-commerce giant is still looking for 150,000 seasonal workers in the United States, and has announced a search for 40,000 corporate and tech workers and\u00a0125,000 fulfillment and transportation workers.<\/p>\n<div class=\"paywall\">\n       \u201cIn\u00a0Q3,\u00a0labor\u00a0became\u00a0our\u00a0primary\u00a0capacity\u00a0constraint,\u00a0not\u00a0storage\u00a0space or fulfillment capacity,\u201d said Amazon\u2019s<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-3.06%<\/bg-quote><br \/>\n       Chief Financial Officer Brian Olsavsky on the earnings call, according to FactSet. <\/p>\n<p>\u201cAs a result, inventory placement was frequently redirected to fulfillment centers that had the labor to receive the products. This resulted in less optimal placement, which leads to longer and more expensive transportation routes.\u201d<\/p>\n<p>The supply chain bottlenecks and labor squeeze forced changes to Amazon\u2019s 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.<\/p>\n<p><strong>See:<\/strong> Walmart, Target, Home Depot and other large retailers are chartering ships to bypass supply chain problems. Will the strategy save Christmas?<\/p>\n<p>\u201cIn short, our operations are normally well staffed and optimized to be in stock and to deliver to customers in one to two days,\u201d Olsavsky said.<\/p>\n<p>\u201cLabor shortages and supply chain disruptions upset this balance and resulted in additional costs to ensure that we continue to maintain our service levels to customers.\u201d<\/p>\n<p>One area where the company says it hasn\u2019t fallen short is in real estate to handle the huge volume of products and services the company provides.<\/p>\n<p>\u201cWe made strong progress in Q3 to build and open new facilities and as a result for the first time since the pandemic began, we are no longer capacity constrained for physical space in the network,\u201d Olsavsky said.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cSeptember alone we brought online more than 100 new buildings in the United States  including fulfillment centers, sort centers, and last-mile delivery stations. For the year, we expect our 2021 footprint additions to exceed last year\u2019s buildout, which was also significant.\u201d<\/p>\n<p>Amazon missed expectations, reporting a third-quarter profit decline to $6.12 a share while revenue increased to $110.8 billion. The stock fell 3.8% in Friday trading after the earnings announcement.<\/p>\n<p><strong>Also: <\/strong>Supply-chain concerns causing shoppers to stockpile gifts just in case, data shows<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.aboutamazon.com\/news\/operations\/amazons-plan-to-serve-customers-this-holiday-season\" class=\"icon none\">On Monday<\/a>, the company gave a supply chain update on its corporate site in an effort to reassure customers that the holidays will go off without a hitch.<\/p>\n<p>\u201cOur teams have been hard at work for months, focusing on capacity and demand planning to balance our customers\u2019 needs against any supply chain or transportation challenges that may occur,\u201d the post says. <\/p>\n<p>\u201cWhile we are always investing in our supply chain and transportation network, we have done even more this year to ensure we don\u2019t let recent supply-chain constraints impact the Amazon experience for our customers.\u201d<\/p>\n<p>Amazon says it has more than 50,000 trailers to haul freight around the world, will have more than 85 aircraft in its Amazon Air cargo fleet later this season, and has increased its entry port network by 50%.<\/p>\n<p><strong>Also:<\/strong> Hasbro says most of the $100 million in merchandise that was delayed by supply chain problems in the third quarter has been delivered<\/p>\n<p>\u201cWith 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,\u201d Truist analysts wrote in a note.<\/p>\n<p>Amazon expects costs to increase towards $4 billion in the fourth quarter. And the company called out inflation and higher costs for materials.<\/p>\n<p>\u201cWe view these headwinds as macro in nature impacting Amazon as well as peers, yet given its size and scale, and forward-leaning management team, we expect the company\u2019s P&amp;L to be able to comfortably absorb these costs as these labor supply issues wane, and as the company\u2019s fulfillment capacity remains healthy (which is right now),\u201d Truist said.<\/p>\n<p>Truist rates Amazon stock buy with a $4,000 price target, up from $3,800.<\/p>\n<p>\u201cManagement\u2019s biggest challenge heading into Q4 and into 2022 will be its ability to retain talent, which is needed to scale its low-margin but core retail business that serves as perhaps the most important flywheel piece within the company\u2019s overall business,\u201d wrote Wedbush analysts.<\/p>\n<p>Wedbush rates Amazon shares outperform, but lowered its price target to $3,950 from $4,300.<\/p>\n<p><strong>Don\u2019t miss: <\/strong>\u2018It\u2019s like being ripped into two\u2019: Chipotle workers overwhelmed by online orders and furious customers<\/p>\n<p>\u201cThis year, management is using promotional activity in October to pull forward shopping in order to avoid challenges brought about by an inconsistent stream of workers, including having to redirect inventory placement to better staffed fulfillment centers,\u201d Wedbush said.<\/p>\n<p>Not only do the Amazon results impact that company, but GlobalData says they shine a light on what\u2019s to come for other retailers as well.<\/p>\n<p>\u201cFirst and foremost, they show that as comparatives become tougher growth stalls,\u201d wrote Neil Saunders, GlobalData\u2019s managing director. <\/p>\n<p>\u201cAs a retailer that is, primarily, focused on online,\u00a0Amazon\u2019s difficult comparatives are coming sooner than many more physically-focused players. However, their turn will come and when it does, they will find it much harder to chalk up revenue gains. That, at a time of exceptionally high cost inflation presents an enormous challenge. Many will face the same issues as\u00a0Amazon: bite the bullet and take a hit on the bottom line or try to slash costs and maintain profitability.\u201d<\/p>\n<p>Amazon stock is up 1.6% for the year to date. The Amplify Online Retail ETF<br \/>\n        IBUY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206522380\/composite\" class=\"negative\">-0.73%<\/bg-quote><br \/>\n       is down 3.7% for the period. And the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.14%<\/bg-quote><br \/>\n       has gained 22% for the period.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Tonya Garcia\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/tonya-garcia\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/tgarcianyc\",\"text\":\"@tgarcianyc\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:tgarcia@marketwatch.com\",\"text\":\"tgarcia@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Tonya_Garcia\"><\/span>Tonya Garcia<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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