Amazon to employ 100,000 workers as Coronavirus fuels a surge in online orders

As Coronavirus continues to restrict more and more people to their homes, the volume of online orders is increasing exponentially on a day to day basis. In its announcement on Monday, Amazon (NASDAQ:AMZN) said that it plans on hiring as many as 100,000 workers for its warehouse and delivery services in the U.S to cope with the sharp increase in online orders.

The fear of product shortages or quarantines is pushing people to the retail stores to stock the necessary items for the next few weeks. This has not only resulted in greater staff requirements for retail chains in the U.S for in-store operations but also a dedicated team to handle the online orders with efficiency.

Raley’s, Kroger, And Albertsons To Expand Hiring

Following in the footsteps of Amazon are other supermarket chains in the United States including Raley’s, Kroger, and Albertsons. The companies are resorting to the ex-workers of entertainment, travel, and restaurant industries as the Coronavirus driven restrictions continue to put them out of work.

According to Amazon:

“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.”

Despite the rising restrictions from the government on commercial activities, United Parcel Service Inc. (UPS) announced on Monday that its air deliveries and trucking fleet is still operational. The company also highlighted that its current workforce is sufficient for now to meet demand.

Referring to the flu-like virus that has so far affected over 155,000 people and caused 7,100 deaths worldwide, Amazon said that the surge in online orders demands efficient restocking to avoid shortages of certain items. The increase, the online retail giant added, is also causing delays in some deliveries.

Amazon Raises Minimum Hourly Wage To Attract New Workers

Amazon’s headcount is known to fluctuate in different quarters of the year. In the recent holiday quarter, for example, Amazon reported 798,000 workers (both full and part-time). The company, however, didn’t comment on its estimated headcount after it employs 100,000 new workers.  

To attract new workers, Amazon raised its minimum hourly wage from $15 to $17 in the U.S, applicable from April. As per Amazon, the $2 increase in its minimum hourly wage is likely to cost $350 million in added expenditure to the company.

The Coronavirus is weighing heavily on Amazon’s stock that is currently trading at around £1,425 per share. The virus-driven downward rally has also wiped a significant chunk from Amazon’s market value that recently lost its trillion-dollar privilege and is currently capped at $840.88 billion.