What happened: A new report says Amazon.com Inc. (NASDAQ: AMZN) needs to invest billions of dollars in expanding its warehouse and delivery system to meet consumer demand. Reuters reports that the online retailer is running out of space and available manpower.
Amazon has nearly doubled its warehouse network in 18 months, although more investments are planned.
Why this is important: Amazon is “short on manpower,” according to Andrea Leigh, vice president of e-commerce optimization company Ideoclick, who previously worked at the company. A job posting for employees at an Amazon warehouse in Montgomery NY, 60 miles northwest of New York City, offered a bonus of $ 3,000 to recruits to start work by July 1.
The company currently employs 1,335,000 full and part-time workers.
And after: Amazon is expected to add 517 facilities to its global distribution network in the coming years, an additional 176 million square feet added to the 402 million square feet the company currently uses, according to logistics consultancy MWPVL International.
Over the past 12 months, Amazon has increased its capital spending and equipment rentals by 74% to $ 54.5 billion.
See more Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.