AMZN Amazon.com Inc

By Dana Mattioli 

Amazon.com Inc. plans to hire an additional 100,000 employees in the U.S., according to a company spokesman, as people are turning to online deliveries at a breakneck pace to help contain the spread of the new coronavirus.

Amazon plans to deploy the new workers to fuel e-commerce deliveries and is raising pay for these employees in the U.S. and Canada by $2 an hour through April. In the U.K., it will go up GBP2 an hour and approximately EUR2 an hour in many EU countries. Amazon currently pays $15 an hour as a starting wage to workers in its fulfillment centers around the U.S.

With the coronavirus spreading throughout the U.S. and states implementing restrictions on large gatherings, more customers are turning to online shopping for everything from grocery delivery to paper towels, cleaning supplies and daily needs. Amazon, which also owns grocery store chain Whole Foods, was one of the companies President Trump mentioned during his update on the coronavirus on Sunday. Amazon accounts for 39% of all online orders in the U.S., according to eMarketer, and is shouldering a lot of those needs.

"We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year," said Dave Clark, Amazon's senior vice president of operations in a memo reviewed by The Journal.

The 100,000 new jobs will come at a time when broader retail is contracting and retailers rethink operating physical stores during a pandemic. Apple Inc., Nike Inc. and Lululemon Athletica Inc., among others, have announced temporary store closures. Employees in the hospitality, entertainment and restaurant industries are also facing furloughs with cities such as New York and Washington, D.C. imposing restrictions on gathering in public places.

On Wednesday, Amazon expanded its sick-leave policy to include part-time warehouse workers and set up a relief fund, with an initial $25 million for delivery partners such as drivers and others affected by the outbreak.

The company earlier eased its policy for unpaid time off, offering workers the option to take unlimited unpaid time off through the end of March without penalties. The change affected workers in offices, stores, warehouses and other locations that require a physical presence.

Write to Dana Mattioli at dana.mattioli@wsj.com

(END) Dow Jones Newswires

March 16, 2020 15:58 ET (19:58 GMT)

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