Due to a labor shortage, Amazon has ‘unfinished business’ with one-day delivery plans.
Amazon Inc.’s one-day delivery plans have been stopped due to manpower shortages caused by the epidemic and poor benefits across several industries. The online retailer also announced dismal third-quarter numbers, as well as a poor prognosis for the fourth quarter.
“We have unfinished business on the one-day-promise side,” Amazon Chief Financial Officer Brian Olsavsky said on Thursday. Before the epidemic, we were beautifully scaling it up in 2019 and the first quarter of 2020… We’re still not back to where we were before the pandemic.” Because of the increased demand for online services, many web-based companies, notably Amazon, enjoyed a significant gain in wealth. The boom produced by the pandemic is no longer sustaining that incredible expansion as the pre-pandemic normal sets in.
“Consumer spending habits have begun to return to pre-pandemic levels,” Olsavsky added.
Labor shortages, according to Olsavsky, have “not helped us bridge the gap” on their one-day shipment delays. He did say, though, that the corporation is hoping for a better year next year.
“In the fourth quarter, we expect to incur several billion dollars of additional costs in our consumer business as we manage through labor supply shortages, increasing pay costs, global supply chain challenges, and increased freight and delivery costs,” Amazon CEO Andy Jassy said in a news release. In the short term, it will be costly for us, but it is the appropriate priority for our consumers and partners.”