Amazon Adds Jobs, Posts Low Earnings in Third Quarter Report

Amazon’s career day last month was well worth it.  The company revealed it garnered more than 200,000 applications nationwide.  It now employs over 50,000 in Seattle and over 750,000 overall, touting a 22% year over year gain.  Amazon added nearly 100,000 employees just in the last three months.  One of the biggest driving factors of the hiring spree?  Amazon’s plan to rollout one day shipping.

One day shipping is a great feat.  And Amazon has the numbers to prove it.  They are anticipating spending about $1.5 billion in the fourth quarter on one day delivery.  The costs are mostly due to an increasing cost of transportation.  However, Amazon is slated to spend double the amount it had anticipated when Amazon first announced its new standard one day shipping.

This amount is cutting into its profits.  Amazon’s 3rd quarter earnings show Amazon has missed its anticipated earnings, for the second straight quarter.  Shares traded lower this year as well. 

However, years past has shown us that the tech giant can offset their large expenditures with its money-making cloud business.  Also, with Amazon’s current two-day shipping, has prompted other retailers to follow suit.  Now, many other large retailers are touting two-day shipping such as Target and Walmart.  Amazon is constantly changing the way people buy and how retailers sell.  It’s no surprise that Amazon wants to up the ante again with its one-day shipping.  The retail industry will most likely follow suit, with Walmart who already announced one-day delivery on many items with a minimum order.

While investors may not be happy about the current overspending, Amazon’s executive team remains optimistic.