With an intention to expand next-day delivery for shoppers during the Amazon has announced its plans to add 2,50,000 US workers for the holiday shopping season which is 67 per cent more than the number of people hired in the past two years.
Amazon‘s plans contrast with other US retailers, who say they will hire fewer people in stores and warehouses this year on expectations for reduced consumer spending in 2023, reported Reuters.
Forecasters expect holiday sales to come in at half of last year’s rate due to concerns about higher prices.
Seasonal hiring is expected to drop to its lowest since 2008 due to higher costs and weak consumer confidence, reported Reuters quoting research agencies.
According to Tuesday’s target, Amazon would be hiring 1,00,000 employees for the holiday shopping season, flat year over year. Target also plans to begin offering discounts in October.
On the other hand, Walmart, another US retail giant, has not yet announced holiday hiring plans. The company has hired 40,000 seasonal workers in 2022, reported Reuters.
Amazon’s hiring spree comes after it added 50 new fulfillment centres, delivery stations and same-day delivery in the United States, and as it prepares for its expanded fall Prime Event, scheduled for October 10-11.
During Amazon’s Prime Event, the e-commerce giant is encouraging its merchants to offer discounts, a strategy that could prompt some frugal shoppers to open their wallets and splurge on gifts well ahead of the Black Friday and Cyber Monday shopping days.
Amazon hires full-time, part-time and seasonal fulfillment employees, it said.
New seasonal workers, who have been hired to pick, sort, pack and ship orders, will get sign-on bonuses between $1,000 and $3,0000 in select locations, compared to associates who received $3,000 bonuses in 2022 and 2021 in some locations, it said.
Amazon has said that it will pay its seasonal workers $17 to $28 per hour on average depending on their jobs and locations, compared to the $19 hourly wage workers were offered last year.