Not to be bested by huge brick-and-mortar store operators like Wal-Mart Stores Inc. (NYSE: WMT) and Macy’s Inc. (NYSE: M), Amazon.com Inc. (NASDAQ: AMZN) will hire 80,000 workers for the holiday season. Amazon has had backlog problems during the holidays in the past. The move may be meant to partially solve that in 2014.

The company announced:

Amazon.com, Inc. is creating 80,000 seasonal positions across its U.S. network of fulfillment and sortation centers this holiday season in order to meet an increase in customer demand. Last year, Amazon converted thousands of seasonal employees into regular, full-time roles after the holidays, and expects to do the same this year.

“So far this year, we have converted more than 10,000 seasonal employees in the U.S. into regular, full-time roles and we’re looking forward to converting thousands more across our growing network of fulfillment and sortation centers after this holiday season,” said Mike Roth, Amazon’s vice president of North America operations. “We’re excited to be creating 80,000 seasonal jobs, thousands of which will lead to regular, full-time roles with benefits starting on day one and innovative programs like Career Choice for employees to further pursue their education.”

As Amazon moves into the creation of its own stores, the number of workers is likely to rise again.

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However, one of the criticisms of Amazon is that its margins are wanting. It lost money last quarter, and it is expected to do so during the current period:

Net sales increased 23% to $19.34 billion in the second quarter, compared with $15.70 billion in second quarter 2013. Excluding the $237 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 22% compared with second quarter 2013.

Operating loss was $15 million in the second quarter, compared with operating income of $79 million in second quarter 2013. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating loss was $31 million.

Net loss was $126 million in the second quarter, or $0.27 per diluted share, compared with net loss of $7 million, or $0.02 per diluted share, in second quarter 2013.

Third Quarter 2014 Guidance

Net sales are expected to be between $19.7 billion and $21.5 billion, or to grow between 15% and 26% compared with third quarter 2013.

Operating loss is expected to be between $810 million and $410 million, compared to $25 million in third quarter 2013.

This guidance includes approximately $410 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.

The addition of 80,000 workers can only contribute to future losses.

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