Amazon to spend $1 billion in pay increase for operations workers

Marianne Wilson
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Amazon is hiking the pay of some of its employees by as much as $3.50 per hour.  

The tech giant is boosting the pay of its more than 500,000 U.S. operations employees from 50 cents to $3.50 per hour. The hike, announced in a post by Darcie Henry, Amazon VP of people experience and technology, worldwide consumer, represents an investment of more than $1 billion on incremental pay for employees across Amazon’s fulfillment, delivery, package sortation and specialty fulfillment operations.

The increase will take effect in mid-May through early June. Amazon said it moved up annual pay review for operations positions from fall to this spring.

Henry noted in the post that the increase comes on top of Amazon’s “already industry-leading starting wage of at least $15 an hour and the more than $2.5 billion that we invested last year in additional bonuses and incentives for front-line teams.”

Amazon now employs 1.3 million people worldwide and is the second largest employer in the U.S. behind Walmart. It was recently ranked as the top U.S. workplace for professionals to develop their careers and skills in a study by LinkedIn. 

The move comes after Amazon has come under scrutiny for its labor practices and a failed landmark union drive at the company’s warehouse in Bessemer, Ala.