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        <title><![CDATA[Amazon says COVID-related expenses will cost $4B this quarter]]></title>
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            <media:title type="html">Amazon says COVID-related expenses will cost $4B this quarter</media:title>
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						<p>By the time this fiscal quarter is through, Amazon estimates it will have spent more than $11 billion on coronavirus-related expenses.</p>
<p>The e-commerce titan said during its Thursday earnings report that it expects to spend around $4 billion battling the virus, on top of the $7.5 billion in costs it has already rung up since March.</p>
<p>First quarter coronavirus expenses cost Amazon $600 million, with the number <strong>ballooning to $4 billion</strong> during the peak of the pandemic and decreasing slightly to $2.5 billion in the most recent quarter, the company said.</p>
<p>Investments included personal protective equipment for Amazon’s workforce — which it announced on Thursday has hit 1 million — “enhanced cleaning” of its facilities, higher wages for hourly workers as well as “hundreds of millions” of dollars for Amazon to develop its coronavirus testing capabilities.</p>
<p>Much of the increased costs are related to &#8220;the large influx of new employees hired to support strong customer demand,&#8221; CFO Brian Olsavsky said on a call with analysts.</p>
<p>The Seattle-based e-tailer&#8217;s guidance on operating income for the quarter was $1.5 billion to $4 billion, and already factored in the Covid-related spending.</p>
<p>Olsavsky said that the pandemic, along with the upcoming election and the fact that the company&#8217;s Prime Day shopping extravaganza was delayed until October this year, has created a lot of uncertainty for the holiday quarter.</p>
Shares of Amazon were down 4 percent Friday morning, trading at $3,082.99.
			
					
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