Question

The Article"Amazon Profit Falls as Pandemic-Related Costs Rise"

NEW YORK — Amazon’s sales soared in the first three months of the year, as more homebound people shopped online amid the coronavirus pandemic.

But getting millions of packages to shopper’s doorsteps is expensive. The rising costs pushed Amazon’s first-quarter profit down 29% and its earnings missed Wall Street expectations. Amazon shares slipped about 5% in after-hours trading April 30.

And CEO and founder Jeff Bezos says Amazon will spend more.

Bezos said he expects the company to spend $4 billion “and perhaps a bit more” in the second quarter. That money will go to pay workers overtime, to buy masks or other safety protection for them and to disinfect Amazon’s vast warehouses where orders are packed and shipped.

Still, the company is in better financial position than most traditional retailers. Macy’s, Kohl’s and Gap temporarily closed their stores, losing much of their sales. They also have stopped paying their workers.

Amazon, whose reputation is built on speedy deliveries, has struggled to keep up with the surge in orders. Deliveries that took two days or less can now take a week or longer. And it is sold out of many of the products people need, like toilet paper and disinfectant sprays.

The problem, Amazon said, is that it can’t get products into its warehouses and out again fast enough. The company doesn’t know when delivery times will return to normal.

“Right now, things are still so up in the air that I can’t really project when that day will be,” said Brian Olsavsky, Amazon’s chief financial officer.

It has hired 175,000 people to try to keep up with the rush of orders and is paying workers an extra $2 an hour. But many have stayed home, worried they may contract the virus at the warehouse where thousands of people work. Some have protested what they said were unsafe conditions.

In France, a court closed all six Amazon warehouses, saying that the company didn’t do enough to protect workers. Amazon has said it provides workers with face masks, has been checking temperatures and keeps workers apart.

Overall, the Seattle-based company reported net income of $2.54 billion in the first quarter, compared with $3.56 billion a year ago. Earnings per share came to $5.01, below the $6.23 analysts expected, according to FactSet.

Revenue rose 26% to $75.45 billion, beating the $73.7 billion analysts expected.

Outside of online shopping, Amazon’s other businesses also grew. Revenue at its cloud computing business, which helps powers video streaming site Netflix and other companies, rose 33%.

At Whole Foods, revenue rose 8%. Amazon said much of the sales increase happened in March, when shoppers headed to Whole Foods to stock up on groceries due to the pandemic.

Its total workforce topped 840,000 at the end of March, adding more than 42,000 employees since the end of last year. Amazon.com Inc. is the second-largest U.S.-based employer behind Walmart.

Summarize and describe importance of story. What are the implications for this story on the future? The story should be three robust paragraphs

Answer 1

Amazon.com.inc considered as the second largest U.S based employer after Walmart.During the first three months of this year,amazon's sale soared due to online shopping of amid coronavirus pandemic.Minnion's of packages to shopper's doorstep rised costs and pushed Amazon's first quarter profit down 29%and it's earning missed wallstreet expectations.Amazon's shares slipped about 5% in after trading April 30.CEO and founder of the Amazon,Jeff Bezos says that Amzon expect to spend $4 billion more in the econd quarter.The money is go for disinfecting Amazon's warehouses and pay to workers for buying self protecting items.Still,themcompany is in better financial position than other traditional retailers.Becuase,Macy's,Kohl's and Gap temporarily closed their sores and and stopped paying for their workers.Amzon got reputation from their speedy delivery.Now they struugled to keep up with the surge in orders.Now deliveries takes a week or longer.Soldout of many product people need like toilet paper and diinfect sprays.The company doesn't know when delivery times will return to normal.

Amazon hired 175,000 people ro meet the rush in orders and pays extra $2 for an hour.Many of the worried to work with thousends of people in warehouses and they stay at home and protesting that they are unsafe.In France,court closed all six Amazon warehouses.But Amzon says that they providing safety masks and checking temperatures for each workers.It's total workforce topped 840,000 at the end of the March adding more than 42,000 employees since end of the last year.

Seattle based company reported that net income of $2.54 billion in the first quarter compared with $3.56 billion a year ago.Earnings per share come to $5.01,below the analyst expected $6.23 according to Factset.Revenue expected is $73.7 billion,it increased by $75.45 billion(26%).Other businesses (excluding online shopping) Also grew.Revenue at it,s cloud computing business,which helps power video streaming site and other companies rose 33%.Revenue from whole foods increased by 8% and sales increase happened in March because of shoppers stock up on groceries due to pandemic.

The above story is the experience of Amazon during amid coronavirus pandemic.Amazon struggling to maintain their reputation.But Amazons profit falls due pandemic related cost increase.