Amazon Predicts Covid-19 Spending will Reach $4 Billion in the Next Quarter1 min read

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Amazon said in its earnings report that its operating income in the fourth quarter would be between $1 billion and $4.5 billion.

Covid-19, which suddenly took a place in the middle of our lives and changed our habits and order, caused extra costs for companies. The money spent on the measures taken also started to increase in this period. Amazon is one of the companies that spend a lot of money due to Covid-19. Because the company said in its earnings report that its operating income in the fourth quarter will be between $1 billion and $4.5 billion. He said roughly $4 billion would be spent on items such as Covid-19 tests, cleaning, extending employee breaks, and social distance measures.

4 billion dollars spent in the 4th quarter for Covid-19

The company said the disease has spent $7.5 billion in costs related to Covid-19 since the beginning of this year. Amazon previously said that COVID costs were about $600 million in the first quarter and more than $ 4 billion in the second. CFO Brian Olsavsky told an analyst that the company’s third-quarter Covid-19 costs were about $2.5 billion. This number is increasing in the next quarter.

Most of the increase in costs is due to the expansion of its operations, Olsavsky said. Amazon hired 100,000 new employees in October. Olsavsky said the costs are associated with loss of efficiency from changing the way it works, as well as expenses on personal protective equipment and other upfront costs.

50 thousand Covid-19 tests are performed daily in Amazon labs

Some employees test positive in at least 64 of Amazon’s warehouses, causing the company to take such a measure. This became a serious expense item for Amazon. Amazon said in a statement on Thursday that they continue to develop the in-house Covid-19 test program with a capacity of up to 50,000 tests per day until November.

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