Amazon reported a shortfall Thursday in third-quarter profits and sales as the Seattle-based company contends with surging costs amid a snarled supply chain and labor shortages.
Amazon isn't just grappling with the easing of pandemic-induced shopping splurges. The online retail behemoth is also contending with surging costs as it navigates a snarled supply chain and labor shortages.
The company reported a profit of $6.2 billion, or $6.12 per share, for the three-month period ended Sept. 30. That compared with a profit of $6.3 billion, or $12.37 per share, during the year-ago period. Revenue rose 15% to $110.8 billion, the company's fourth consecutive quarter of revenue topping $100 billion.
In addition, it saw inflationary pressures in raw materials and services such as steel and third-party trucking. Amazon ran into another $1 billion of costs tied to lost productivity and disruption in its operations. Amazon is on a hiring binge. It increased its global head count by 628,000 employees in the past 18 months and it's looking to hire more. It announced in September it wants to hire 125,000 delivery and warehouse workers. That's in addition to the 150,000 seasonal workers it plans to bring on this season.
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