Amazon Bets $20 an Hour on 300,000 Holiday Workers
The retail giant pairs a 300,000-worker seasonal hiring push with first-day healthcare plans starting in 2027.
For the first time in three years, Amazon is expanding its seasonal U.S. workforce, a move that signals rising consumer demand forecasts and intensifying competition for warehouse labor heading into the final quarter of 2026.
The company announced Tuesday it will hire more than 300,000 workers across its U.S. core operations network. New openings will be posted weekly from October through December, according to the announcement. Seasonal employees will earn an average of $20 an hour, while full-time operations workers start at a minimum of $20. The average hourly pay across Amazon’s core operations workforce sits at nearly $24, the company said.
This hiring surge follows a period of aggressive cost-cutting. Amazon recently eliminated nearly 1,000 white-collar jobs across its stores division and other units, according to reports. That reduction targeted corporate overhead, even as the company poured more than $1.5 billion into additional pay for its U.S. warehouse and logistics staff.
The wage floor reflects broader pressure in the logistics sector. Competitors like Walmart and Target have steadily raised starting pay for distribution center roles over the past two years to combat turnover. Amazon’s decision to guarantee $20 an hour for seasonal work attempts to lock in reliable labor before the peak shipping weeks begin in late November.
Beyond base pay, Amazon is restructuring its benefits timeline to attract longer-term seasonal commitments. Starting Jan. 1, 2027, seasonal employees working at least 30 hours per week will become eligible for healthcare coverage on their first day of employment. Plans will start at $5 per week with $5 copays, the company said. Seasonal workers hired before that date who meet the eligibility requirements will gain access when the new benefit takes effect.
Evercore ISI senior managing director Mark Mahaney highlighted Amazon as one of his top three large-cap stock picks during a Tuesday appearance on Fox Business’ “Varney & Co.,” alongside Meta Platforms and Spotify. Mahaney also outlined his expectations for the broader earnings season.
The recruitment drive arrives as retailers navigate shifting consumer spending patterns. Reuters reported that this marks Amazon’s first increase in holiday recruitment in three years as it prepares for a jump in orders.
