On Thursday, Amazon announced that due to measures implemented in response to the pandemic, which has cost the tech giant a reported US$4 billion, it could potentially record its first quarterly loss in five years.
The e-commerce company’s response to COVID-19 has included testing workers for the deadly virus, providing protective gear to staff and increasing hourly wages.
During a conference call with reporters, Chief Financial Officer Brian Olsavsky said that Amazing expects to spend US$300 million in the second quarter to develop the capability to test its staff for the virus.
The addition of 175,000 new hires to meet unprecedented levels of demand is also going to add to the company’s costs.
Still, despite the surge in expenses, Amazon says it expects revenue in the current quarter to jump by as much as 28%, to $81 billion.
Jeff Bezos, Amazon’s founder and chief executive officer, said in a news release that the company’s performance demonstrated its “adaptability and durability.”
“If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small. 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 getting products to customers and keeping employees safe.” Bezos added.
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