Amazon.com Inc. on Thursday warned that it could post a loss in the second quarter as it tacked on about US$4 billion in costs related to the COVID-19 pandemic, sending its shares down 5 per cent in extended trade.
The e-commerce giant has been spending heavily to keep up with a surge in online orders. The company had earlier said it would hire about 175,000 workers and raise wages by US$2 for hourly workers as well as overtime pay, which would increase expenses by nearly US$700 million.
“Under normal circumstances, in this coming Q2, we’d expect to make some US$4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the entirety of that US$4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe,” Chief Executive Officer Jeff Bezos said in a statement.
Amazon forecast operating