Amazon will spend $4 billion fighting COVID-19 in the second quarter2020-05-01 19:13 by DanielaTags: Amazon, COVID19
Amazon CEO Jeff Bezos has said that he expects to spend $4 billion USD in Q2 in response to the coronavirus pandemic and its demands, making sure that the company is "getting products to customers and keeping employees safe." "If you're a shareowner in Amazon, you may want to take a seat, because we're not thinking small," Bezos wrote Thursday. "Under normal circumstances, in this coming Q2, we'd expect to make some $4 billion or more in operating profit. But these aren't normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses." That spending includes higher wages for workers and more safety gear like face masks. Also, Amazon's internal development of COVID-19 testing capabilities will cost $300 million in the second quarter and could cost $1 billion for 2020. The $4 billion in spending is a huge jump from the $600 million Amazon already spent in the first quarter on coronavirus-related costs. Amazon, for example, has procured 100 million face masks to be worn by "all associates, drivers, and support staff in our operations network." It has purchased more than 1,000 thermal cameras and 31,000 thermometers, which are being used to conduct mandatory daily temperature checks for employees and support staff throughout its operations sites and Whole Foods Market stores. And it has assembled a team including research scientists, program managers, procurement specialists and software engineers to build incremental testing capacity. Read more -here-
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