Amazon sees heavy earnings hit from virus pandemic

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Amazon said Thursday profits took a hit in the past quarter due to the global pandemic and that its earnings in the current period would be entirely wiped out by COVID-related expenses.

The technology and e-commerce giant said its revenues surged 26 percent in the first three months of 2020 to more than $75 billion, as people hunkered down at home due to the pandemic turned to it for supplies and entertainment.Chief executive Jeff Bezos said all profits in the April-June quarter would be erased by expenses linked to the global virus outbreak.“But these aren’t normal circumstances.

Bezos said that “the current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced.” Amazon has become a lifeline for consumers facing lockdowns and restrictions around the world, and the company is in the process of adding some 175,000 new employees to cope with surging demand.

 

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