Technology

Amazon plans to settle in six cities with $1.4 billion

ileod 8 months ago 3 min read

Beijing Business Daily News (reporter Tao Feng ChangLei) under the epidemic situation, Amazon is expanding against the trend. Amazon announced on Tuesday that it would invest about $1.4 billion to expand its office space in six major U.S. cities and create 3500 new jobs. Amazon announced that the expansion will take place in Dallas, Denver, Detroit, New York, Phoenix and San Diego. The new jobs include AWS, Alexa, Amazon advertising, Amazon fashion, opstech and Amazon fresh. “These 3500 new jobs will be distributed in cities with a strong and diverse talent pool across the country,” Bess Galletti, Amazon’s senior vice president of human resources, said in a statement. We look forward to helping these communities develop their emerging skilled workforce. ” Beijing Business News reporter contacted Amazon for an interview. As of press release, no reply was received. in fact, Amazon has been looking for more offices away from its headquarters in Seattle. A week ago, Amazon just sent a letter of inquiry to employees at its headquarters, planning to move out of Seattle to consult employees at its new office. in May 2018, the Seattle City Council approved a plan to tax businesses for $48 million to raise funds for affordable housing. But under pressure from Amazon, Starbucks and other companies, the Seattle City Council subsequently cancelled the tax plan. However, in July this year, the Seattle City Council passed a new tax, which will tax large enterprises based on the proportion of high paid employees in large enterprises. It is estimated that the annual tax increase will exceed 200 million dollars. This means that the new tax policy will cost Amazon even more than the tax plan of 2018. in addition to the above $1.4 billion, Amazon has already taken action. Amazon is building a second major office center in suburban Virginia and satellite offices in New York, Austin and Los Angeles. Amazon had about 877000 employees worldwide as of June 30, according to data provided by Amazon. for Amazon, which is anxious to expand its offline scale, now is undoubtedly a good time. Affected by the epidemic, employees of many companies in the United States have been working at home recently. Today, these companies are also considering adjusting their office footprints. Financial firms in Manhattan, for example, have turned to the suburbs of New York. more importantly, Amazon has made a lot of money during this period. On August 18, U.S. President trump bombarded Amazon, claiming that Amazon and other Internet retailers had caused huge losses to the U.S. Postal Service. Trump said the U.S. post office lost an average of $3-4 per package for Amazon. on July 30, Amazon released the financial data of Q2 in 2020. According to the data, in the second quarter of this year, Amazon’s total revenue was 88.9 billion US dollars, with a year-on-year growth rate of 40%, significantly exceeding the market expectation of 81.2 billion US dollars. The e-commerce sector is the main driving force to boost revenue, with revenue up 48% year-on-year in the second quarter.