Amazon (XNAS-AMZN) has announced a $1 billion investment aimed at raising wages and reducing healthcare expenses for its U.S. based warehouse and transportation employees. The move is part of a broader initiative to improve working conditions and retain talent across its logistics network.
With a global workforce of 1.5 million, Amazon continues to face pressure from labor unions and regulators. In December 2024, seven Amazon facilities staged strikes led by the Teamsters Union, demanding improved labor agreements during peak shopping periods. That same month, Amazon reached a settlement with the Occupational Safety and Health Administration (OSHA), agreeing to implement ergonomic improvements across its U.S. operations. The wage and healthcare adjustments come ahead of Amazon’s Q2 earnings release, scheduled for July 31, and signal a strategic shift toward more sustainable labor practices amid growing scrutiny of its employment standards.
Starting next year, the average hourly wage will rise to over $23, with senior employees receiving increases between $1.10 and $1.90 per hour. For full time workers, this translates to an annual salary boost of approximately $1,600.