The coronavirus pandemic has saved $ 1 billion in journey bills, based on Amazon
Nikol Szymul manned a reception desk in Amazon offices that is discreetly hidden in a building called Fiona in downtown Seattle, Washington on May 11, 2017.
Amazon saved nearly $ 1 billion in employee travel expenses this year as the coronavirus pandemic prevented employees from getting on planes.
"Right now there are some perks," said Brian Olsavsky, CFO of Amazon, of the company's third quarter results on Thursday. "Travel to a standstill."
Internal travel expenses are likely to resume "at a later date," but they may not rise to the levels they have seen in the past, Olsavksky added. He also said the company saved some money through reduced marketing costs.
At the beginning of the pandemic, Amazon urged its more than 1 million employees to avoid all non-essential travel to the US and abroad out of concerns for their health and safety. In addition, many countries have banned or banned US citizens from entering the country as US coronavirus cases continue to rise.
Despite the cost savings from travel and marketing, Amazon says spending is increasing in the current quarter. The cost of coronavirus is expected to rise to $ 4 billion during the reporting period, from $ 2.5 billion in the most recent quarter.
The company announced that fourth quarter operating income will be between $ 1 billion and $ 4.5 billion, with approximately $ 4 billion tied to Covid-19 costs, up from $ 2.5 billion last year Quarter. The majority of these costs are related to the "productivity headwinds" due to increasing social distancing, as well as testing employees for the coronavirus and purchasing protective goods.
CLOCK: Amazon beats the income statement in the third quarter