Amazon (AMZN) to Hire 30,000 Part-timers Over the Next Year

Job creation doesn't come as a surprise from an industry leader like, Inc.AMZN , one of the world's fastest growing companies with fingers in almost every pie.

The retail giant yesterday announced that it will create 30,000 part time domestic jobs over the next year, of which 5,000 will be work-from-home roles. Currently, the company has 40,000 part-time employees across the U.S. The new addition would be on top of the 100,000 full time, full benefit domestic jobs that the company had said it would create over 18 months in January.

Amazon stated that the work-from-home positions will be in its Virtual Customer Service Program. The remaining 25,000 will be hired at its sortation and fulfillment centers. Currently, Amazon operates 70 fulfillment centers across the U.S.

Amazon's part time employees who work at least 20 hours a week are entitled to benefits on top of wages. The benefits include life and disability insurance, dental and vision insurance with Amazon paying the premiums in full. They are also eligible for participation in the company's Career Choice program that pre-pays 95% of tuition for courses connected to in-demand fields, even if the skills they learn do not relate to a future career at Amazon.

Supporting the Enormous Growth

Amazon added 150,000 employees to its U.S. workforce over the last five years and had 180,000 employees by the end of 2016. The recent announcement along with the one made in January takes the number of workers to 130,000, a whopping 72% increase from its current workforce. The company's strategy of building rather than buying puts it in a position to hire on a large scale.

This recent addition makes sense as the company continues to open new fulfillment centers across the nation and invests in logistics, cloud computing and machine learning.

We note that Amazon's shares appreciated 51.1% in the last one year compared with the Zacks Internet Commerce industry's gain of 43.8%. We believe investors are encouraged by Amazon's international expansion and grocery initiatives and its efforts around AWS. The company capitalizes on its execution strength, robust performance and technological prowess.

Bottom Line

Amazon's e-commerce business is facing tough competition in the U.S. from the likes of Alibaba BABA and eBay EBAY . Traditional retailers are also a force to reckon with and a number of them are running e-commerce sites as well. The increased use of Internet in both developed and developing economies is attracting other players to the space., Inc. Revenue (TTM), Inc. Revenue (TTM) |, Inc. Quote

The company has been making heavy investments to maintain its lead in the e-commerce space. These investments have definitely raised questions over its profitability potential but we believe that Amazon's long history of execution, growing focus on innovation, technological prowess and huge cash balance, not only give it the flexibility to pursue growth in potential areas but also to create value for investors.

Through these significant investments, Amazon intends to gain long-term competitive advantage.

Zacks Rank

Currently, Amazon is a Zacks Rank #3 (Hold) stock. A better-better ranked stock in the same space is Mercadolibre, Inc. MELI that sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The long-term expected earnings per share growth rate for Mercadolibre is 25.21%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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