Amazon's Covid-era buildout proves too much as demand cools

The dour results and forecast sent shares down about 13 per cent in early trade on Friday

Amazon.com acknowledged that a hiring and warehouse-building binge during the pandemic is catching up with the company as e-commerce sales growth inevitably slows from the torrid pace of the outbreak.

That reality will weigh on revenue and profit going forward as consumers return to their pre-pandemic habits and inflation may cool their spending. Fuel and labour costs are already biting, and executives said Amazon was watching for whether shoppers will trim their purchases to offset rising prices.  

Amazon said it lost money during the first quarter and gave a forecast that said it may see another loss in the current period. Sales