SEATTLE, Washington: To expand its next-day delivery services for shoppers, Amazon said it plans to hire 250,000 more U.S. workers for the holiday shopping season, 67 percent higher than for the past two years.
By contrast, other U.S. retailers said that due to expectations for reduced consumer spending in 2023, they will hire fewer people in stores and warehouses this year on.
Research firm Challenger, Gray and Christmas said that due to higher costs and weak consumer confidence, overall seasonal hiring is expected to drop to its lowest since 2008.
The e-commerce giant also recently added 50 new fulfillment centers, delivery stations, and same-day delivery in the U.S., in preparation for its expanded fall Prime Event scheduled for October 10 and 11.
During the Prime Event, Amazon will encourage its merchants to offer discounts, a strategy aimed at encouraging more cost-conscious shoppers to spend on gifts well ahead of the Black Friday and Cyber Monday shopping days.
The Seattle-based e-retailer, whose seasonal hiring includes full-time, part-time, and seasonal fulfillment employees, said it will invest US$1.3 billion for pay increases for fulfillment and transportation workers this year.
In a statement, John Felton, Amazon's senior vice president of worldwide operations, said, "A fulfillment or transportation employee who starts with us today will see a 13 percent increase in pay over the next three years, likely more, including our annual wage investments."
After a series of tech layoffs earlier this year, Amazon made some 27,000 redundant, or some nine percent of its workforce, in its advertising, cloud computing, and human resources departments.