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Amazon (AMZN) to Retain Employees to Meet Spike in Orders

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Amazon (AMZN - Free Report) is constantly striving to strengthen workforce in a bid to meet the surge in online orders during the coronavirus-induced crisis.

This is evident from the company’s latest plans to convert a few of its temporary workers to permanent ones.

Since March, Amazon has been inviting workers who have lost their jobs in various sectors due to coronavirus-induced economic shutdowns to join the company and help it in its operations.

Now, in view of the current challenging situation and demand scenario, the company has decided to convert 125,000 or approximately 70% of the 175,000 temporary workers hired during the pandemic to permanent employees.

Its latest efforts most likely signify that the e-commerce giant is continuing to witness strong demand on account of house-arrest situation as a result of the rapidly spreading COVID-19 infection.

Therefore, retention of the temporary employees will help Amazon to be in a better position to meet the flurry of online orders.

Full-time employees at Amazon are entitled a minimum wage of $15 an hour, and provided with healthcare and other full-time benefits. In addition, the company offers programs like Career Choice to help employees pursue courses related to fields that are in demand.

Amazon.com, Inc. Price and Consensus

 

Amazon’s Strong Initiatives

Amazon’s strengthening hiring drive and other strategies to manage the flurry of orders remain noteworthy.

Recently, its India unit announced that is is going to hire 50,000 temporary workers in the country due to increasing demand for products amid coronavirus-induced lockdown.

Also recently, Amazon partnered with ride-hailing company, Lyft (LYFT). Per the deal, Lyft has asked its drivers to consider job opportunities at Amazon as means of additional income. These comprise delivery drivers, warehouse and shopper jobs.

In addition, the company is investing heavily to promote the interests of workers during this challenging situation. It plans to invest nearly $4 billion to keep its employees and partners safe at warehouses.

In this regard, the company recently incorporated thermal cameras at warehouses to accelerate the screening process of workers. These cameras require less time than manual forehead thermometers.

Amazon is reportedly building an in-house COVID-19 testing lab for which it has already started collecting and assembling equipments.

All these endeavors are expected to help the company in driving workers’ momentum and delivering enhanced customer experience during the coronavirus pandemic.

Zacks Rank & Stocks to Consider

Amazon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Wayfair Inc. (W - Free Report) , eBay (EBAY - Free Report) and Inphi Corporation (IPHI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Wayfair, eBay, and Inphi is currently projected at 23%, 12.4% and 37.7%, respectively.

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This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.

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