Amazon’s labor, supply crunch in March quarter led to fall in stocks
(source: IANS) (Photo Credit: (source: IANS))
San Francisco: Amazon has been hit hard by labor supply constraints, increased wage costs and global supply chain issues, which resulted in third quarter net income falling to $3.2 billion. With this, the company’s shares fell more than 4 percent.
Amazon CEO Andy Jesse said in a statement that in the fourth quarter, the company expects to spend several billion dollars in additional costs in its consumer business.
This is because Amazon is grappling with labor supply shortages, increased wage costs, global supply chain issues and shipping costs. The company is working on this to minimize the impact on customers and sales partners during this holiday season.
Amazon reported revenue of $110.81 billion (expected $111.6 billion) in the September quarter.
For the fourth quarter, Amazon forecast sales between $130 billion and $140 billion, with growth expected to range from 4 percent to 12 percent.
Our revenue guidance for the fourth quarter reflects the current trends we are seeing,” said Brian T. Olsavsky, the company’s SVP and chief financial officer. Like many other companies, we are addressing labor shortages and improving supply chains.
Disclaimer: This is a news published directly from IANS News Feed. With this, the News Nation team has not done any editing of any kind. In such a situation, any responsibility regarding the related news will be of the news agency itself.
First Published : 29 Oct 2021, 03:40:01 PM
For all the latest Science & Tech News, Download News Nation Android and iOS Mobile Apps.