To Hire 70,000 In Fourth Quarter - InformationWeek
Cloud // Software as a Service
03:23 PM
Connect Directly
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>> To Hire 70,000 In Fourth Quarter

Online retail giant readies fulfillment staff for holiday sales expected to be 40% ahead of last year.

8 Wearable Tech Devices To Watch
8 Wearable Tech Devices To Watch
(click image for larger view)
With its online retail business growing, will hire 70,000 seasonal workers in the fourth quarter to help it fulfill holiday orders, an increase of 40% or 20,000 workers over last year. The announcement comes as something of a jolt. How can hiring on such a massive scale be going on in a limping economy? The federal government is laying off two-thirds of its employees due to the stand-off over funding bills in Congress. Will your former IRS auditor be fulfilling your holiday purchases this year? said in its announcement today that last year, it converted 7,000 of these seasonal workers or 14% into full-time jobs after the holiday season was over. If that ratio holds, it would mean 9,800 of this year's 70,000 would end up in permanent jobs. Furthermore, an spokesman hastened to add that the seasonal workers are hired into temporary but full-time jobs, earning 94% of the starting pay of regular workers at its chain of fulfillment centers. They also receive health benefits.

At the same time, is looking for a little good news ahead of its earnings announcement. Consensus opinion on Wall Street is that the company will post a $.09 loss per share, a continuation of a string of losing quarters. Losses haven't hurt the stock price, which was trading at $318.64 an hour before the close, up $6 from the previous day's close.

[ Amazon is spiffing up its content delivery service. Read Amazon CloudFront CDN: Goodbye 404 Messages. ]

Some of the usual investor expectations are waived, where is concerned. It is regarded as a company of the future, one whose retail market share will allow it to earn sustained profits once its build-out slows. Revenues are believed to be growing at a 24.5% rate in the third quarter, still strong but a slowdown from 29% in the second quarter and 33.6% in the first quarter.

"We have converted more than 7,000 temporary employees in the U.S. into full-time, regular roles (in 2013) and were looking forward to converting thousands more after this holiday season," said Dave Clark, VP of worldwide operations and customer service. Amazon expects holiday demand to be up by 40%, he added. Clark said that Amazon has added 40,000 full time jobs to the U.S. economy since the start of the recession in 2008.

Amazon might also be trying to build its image as an employer after running into labor difficulties at Bad Hersfeld and Leipzig, Germany, where fulfillment center workers struck for three days earlier this month over its reluctance to grant collective bargaining rights.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
User Rank: Strategist
10/1/2013 | 10:27:12 PM
re: To Hire 70,000 In Fourth Quarter
These jobs are tied into customer fulfillment. Amazon is moving toward same day and over night delivery on many orders, instituting a new standard for online purchasing.It's expensive to support fast deliveries and it's sacrificed short term profits to build out this delivery system. Does the North American consumer require fast delivery, a form of instant gratification? I'm not sure, but in the long run, it will be a strong competitive factor. On the other hand, other online retailers may be able to stick with FedEx and UPS and avoid the overhead.
User Rank: Author
10/1/2013 | 9:05:43 PM
re: To Hire 70,000 In Fourth Quarter
70,000 isn't as impressive as the 500 new jobs Amazon Web Services is bringing to suburban Washington, but at least those jobs are likely to stick around after the holiday season. Let's just hope the Government reopens for business by then
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll