News

Amazon  (AMZN) – Get Amazon.com, Inc. Report said Thursday it will offer to pay the full college tuition for more than 750,000 U.S. hourly employees as job openings in the country hit a new record high.

Shares of the online retail giant were off slightly to $3,504.69 at last check.

Stocks Waver as COVID-19 Concerns Blunts Growth Prospects

Amazon said it would expand its education and skills training benefits it offers to its U.S. employees with a total investment of $1.2 billion by 2025.

Starting in January, Amazon said it will cover the cost of college tuition, fees and textbooks for hourly employees in its operations network after 90 days of employment.

The company will also start covering high school diplomas, GEDs, and English as a Second Language proficiency certifications for its front-line employees.

Amazon said it will pay employees’ tuition and fees in advance rather than offering reimbursement after coursework completion. Front-line employees will have access to annual funds for education as long as they remain at the company.

Brian Olsavsky, Amazon’s chief financial officer, said during the company’s second-quarter earnings conference call in July that “we certainly see stronger demand for workers.” 

“So far, we’ve had good success in hiring them with our wage and benefit package that’s pretty competitive,” he said. “So we’re watching it carefully. But it’s probably one of the bigger elements of inflation in our business right now.”

TheStreet RecommendsPRESS RELEASESCARDIOGENICS HOLDINGS INC. ANNOUNCES A RECORD DATE CHANGE FOR ITS DIVIDEND DISTRIBUTION9 minutes agoPRESS RELEASESNFE And Hydro Finalize Definitive Commercial Terms For Natural Gas Supply To The Alunorte Alumina Refinery In The State Of Pará, Brazil9 minutes agoPRESS RELEASESSmartsheet To Participate At Citi’s 2021 Global Technology Virtual Conference9 minutes agoEarlier this month, Amazon said it would hire 55,000 people for corporate and technology positions in coming months, as it seeks to continue its rapid pace of growth.

The U.S. Bureau of Labor Statistics said 10.9 million jobs were available in July, the fifth straight monthly record.

U.S. Chamber of Commerce Foundation Senior Vice President Cheryl Oldham said in a statement that “we applaud Amazon for the investment they’re making in the workforce.”

“Today, there are not enough workers to fill every open job in the United States, which means that businesses are struggling to hire — especially for roles that require specific or technical skill sets,” Oldham said. 

Other companies have made similar offers to their employees.

Last month, Target  (TGT) – Get Target Corporation Report unveiled a program to subsidize education costs for its 340,000 part- and full-time workers. 

In July, Walmart  (WMT) – Get Walmart Inc. Report said it would pay college tuition fees and books for its employees.

Separately, Walmart said it is planning to end its decades-old quarterly bonuses for store workers starting Jan. 31, amid the giant retailer’s plan to increase hourly wages.

Amazon is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells this stock? Learn more now.