Tuesday, September 26, 2023

Amazon invested over 4 billion in 2021 and has 17,000 employees in Italy

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Amazon invested over 4 billion euros in Italy in 2021, reaching a total of 12.6 billion euros in investments in the country since the opening of Amazon.it in 2010. These numbers, underlines a note from the company, ” highlight Amazon’s commitment to develop the ‘Italy Plan’ also in a challenging macroeconomic scenario with higher operating, energy and other costs along the entire value chain “.

In 2021, Amazon’s workforce  increased to 14,000 and the company has already created 3,000 new permanent jobs in 2022 for a total of over 17,000 permanent employees in Italy.

“Through investments in the logistics network and in the workforce, Amazon also intends to continue to support the more than 20,000 small and medium-sized businesses that sell on Amazon, including the 4,500 SMEs that use the Made in Italy showcase to export their products”, he points out. the press release.

Investments in the Italian economy

In 2021, Amazon opened several new locations. It currently has more than 60 facilities throughout Italy, both logistic and corporate. Furthermore, to support the digital transformation and the recovery of the Italian economy, Amazon Web Services (AWS) opened the Aws Europe Region (Milan) in Lombardy in 2020, allowing Italian SMEs, start-ups, large companies or government agencies to manage their businesses, store data in Italy and serve end users with even lower latency.

AWS will invest 2 billion euros by 2029 with the AWS Europe Region (Milan) , which in turn will contribute 3.7 billion euros to Italian GDP by 2029. According to a new study by The European House – Ambrosetti, which analyzes large companies in Italy, Amazon is among the top five foreign private companies that have invested the most in terms of capital spending in Italy in the period 2019-2021.

“We too, like many other companies, are impacted by the current macroeconomic challenges involving increased operating and energy costs. Our long-term approach translates into a commitment to support our employees, offer our customers the widest selection. keeping prices low in a context of high inflation, and contributing to the country’s priorities: employment, digitalisation, sustainability, skills. Italy is a hotbed of talents and opportunities and we are pleased to play a role in promoting and supporting the growth, even more important in a scenario of uncertainty “, says Mariangela Marseglia, Vp Country Manager Amazon.it and Amazon.es.

Job creation

According to the study by The European House – Ambrosetti, Amazon maintains the first position among the private companies that created the most jobs in the country in the period 2012-2021 . At the end of 2021, Amazon ranked fifth in terms of total employment among foreign companies operating in Italy and in 27th place among all companies.

In 2021, Amazon paid an average of € 35.8 million per month in wages to Italian employees . A substantial increase from € 24.5 million per month in 2020, mainly due to the growth in the number of employees committed to supporting customers during the pandemic.

Starting in October, Amazon has increased entry wages for all warehouse employees , bringing wages to $ 1,713 gross per month. This is an increase of 19% compared to those paid in 2018 and 8% compared to the fifth level of the National Transport and Logistics, to which are added the extras, such as discounts for purchases on Amazon.it, the health insurance and private medical care, which are a big leap forward from most first-time jobs.

In 2021 and 2022, Amazon received the Top Employer certification in Italy in recognition of its diversity-conscious and inclusive work environment, professional development opportunities and training programs that are offered to employees.

According to a recent study by Keystone Strategy, more than 48,000 new jobs were created in 2021 thanks to the indirect effects of investments, for example in the construction, logistics and services sectors. The total indirect jobs reached the record figure of 108,000 including the 60,000 jobs created by Italian small and medium-sized enterprises that use Amazon’s services to grow their business and to export Italian products around the world. 

Revenues and tax contribution

In 2021, the total revenues of Amazon’s activities in Italy were over 8.75 billion euros (+ 21% compared to 7.25 billion euros in 2020). Amazon’s overall tax contribution – combining direct and indirect taxes – was over 751 million euros (+ 118% compared to 345 million euros in 2020).

The total of taxes incurred directly was over 258 million euros (+ 39% compared to 186 million euros in 2020). The taxes paid as an employer represent a large part of it. Other direct taxes include corporate income tax, taxes paid for land acquisition or construction, Digital Service Tax (DST), and import duties.

The company collected and paid an additional 493 million euros in indirect taxes (+ 209% compared to 159 million euros in 2020) thanks to its activity in Italy. These are taxes that Amazon collects from its customers, employees and other third parties as a result of its business activities in Italy, and which it pays on their behalf.

This includes VAT and employee taxes that are withheld by Amazon . The increase in 2021 was largely determined by net VAT. From 1 July 2021, Amazon collects and pays Italian VAT on transactions involving foreign sellers. VAT is calculated by Amazon and collected at the time of payment.

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