While other big companies are begging to be bailed out by the government, Amazon and Jeff Bezos are aggressively expanding.
The online retailer has built a strong balance sheet over the years. The company’s cash on hand enables it to exponentially grow its workforce in the midst of a doomsday scenario.
The e-commerce giant is looking to hire 100,000 new workers across the United States. The massive call for employment comes as people spend more time shopping online due to coronavirus.
The tech titan is also temporarily giving a $2 an hour bump to hourly employees in the U.S. and Canada until Apr. 30.
Beneficiaries of the raise are employees earning $15 per hour, including those working at Whole Foods grocery stores, delivery centers and warehouses. Their counterparts in the United Kingdom and other European countries will receive a $2.45 and $2.24 hourly raise, respectively.
Amazon is in a position to expand its workforce and hand out salary bumps because of its billions of cash on hand.
Over the years, Amazon has strategically built its strong balance sheet. At the end of 2016, the tech company had nearly $26 billion cash on hand. Three years later, that number more than doubled to $55 billion.
As brick-and-mortar stores succumb to the impact of coronavirus, Amazon is more than ready to take on new business. They are also ready to hire workers who lost their jobs amid the pandemic .
It’s as if Jeff Bezos was preparing for this moment. His expanded workforce will help prop up the grinding U.S. economy while dealing a knockout blow to his competitors.
In February, Bezos dumped over $4 billion worth of Amazon shares just as the stock was trading close to all-time highs. Early in his career, Bezos used to work as a portfolio manager at a global investment company. That experience may have helped him to know how to time market tops.
It turns out that he got out days before the market tanked.
The chief executive is sitting on $4 billion in cold hard cash in his personal account. He can redeploy that capital when the coronavirus threat is over. After at the top, Bezos has the means to buy Amazon shares at rock bottom prices.
Bezos is growing his company while his competitors are shuttering due to coronavirus. He sold Amazon shares at the top, giving him billions to potentially buy at the bottom. It’s not surprising to see why he’s the world’s richest man.
The above should not be considered trading advice from CCN.com. The writer does not own Amazon (AMZN) shares.
This article was edited by Sam Bourgi for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor, or find a factual, spelling, or grammar error, please contact us and we will look at it as soon as possible.