Imagine if you are Amazon. Do you take the extra billion dollars you earned this month and throw it into another warehouse and more growth opportunities? Or do you keep your size the same and use that money to raise wages?
It's more of question of how they are allocating funds. Either way, the "profit" stays the same.
Amazon has been focused on growth at all costs, and that meant keeping wages razor slim and reinvesting every spare penny.
The real question is: Will slowing their growth investments and paying their employees a fair wage actually help their growth in the long run?
That's the strategy that makes a company more flexible to market shocks. If your revenue is tied up in new buildings, you can react to market shock by decreasing your growth rate. If your revenue is tied up in wages, you can't react to market shock by slashing your wage budget, for (obvious) psychological reasons that half-constructed warehouses are utterly immune to. ;)
Imagine if you are Amazon. Do you take the extra billion dollars you earned this month and throw it into another warehouse and more growth opportunities? Or do you keep your size the same and use that money to raise wages?
It's more of question of how they are allocating funds. Either way, the "profit" stays the same.
Amazon has been focused on growth at all costs, and that meant keeping wages razor slim and reinvesting every spare penny.
The real question is: Will slowing their growth investments and paying their employees a fair wage actually help their growth in the long run?