Amazon plans to hire 250,000 US workers for holiday season

Amazon said it plans to add 250,000 US workers for the holiday shopping season, 67 per cent more than the number of people it hired for the past two years, as it scrambles to expand next-day delivery for shoppers.

Its boost in hiring comes after it added 50 new fulfillment centers, delivery stations and same-day delivery in the United States, and as it prepares for its expanded fall Prime Event, scheduled for October 10-11.

Other US retailers are hiring fewer people in stores and warehouses this year, according to Challenger, Gray Christmas. Macy's said it would hire more than 38,000 full and part-time workers for the upcoming holiday season, a decline from the previous year.

US retail giant Walmart has not yet announced holiday hiring plans. However, it hired 40,000 seasonal workers in 2022.

Target on Tuesday said it would hire 100,000 employees for the holiday shopping season, flat year over year. Target also plans to begin offering discounts in October.

Retailers' hiring plans come against the backdrop of predictions that sales growth during the crucial holiday period in the United States could be just half of what it was last year due to higher prices, denting consumer spending and worries of a recession.

During Amazon's Prime Event, the e-commerce giant is encouraging its merchants to offer discounts, a strategy that could prompt some frugal shoppers to open their wallets and splurge on gifts well ahead of the Black Friday and Cyber Monday shopping days.

Amazon's seasonal hiring includes full-time, part-time and seasonal fulfillment employees, it said.

New seasonal workers hired to pick, sort, pack and ship orders will get a sign-on bonuses between $1,000 and $3,000 in select locations, compared to associates who received $3,000 bonuses in 2022 and 2021 in some locations, it said.

Amazon said it will pay its seasonal workers $17 to $28 per hour on average depending on their jobs and locations, compared to the $19 hourly wage workers were offered last year.

The Seattle-based e-retailer said it will invest $1.3 billion for pay increases for fulfillment and transportation workers this year.

"A fulfillment or transportation employee who starts with us today will see a 13 per cent increase in pay over the next three years —likely more, including our annual wage investments," John Felton, Amazon senior vice president of worldwide operations, said in a statement.

Amazon earlier this year laid off 27,000 staffers, or about 9 per cent of its workforce, in its advertising, cloud computing and human resources departments following a string of tech lay offs.