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XAmazon Warehouse Worker in L.A. Tests Positive, As Company Struggles with Covid-19

At least 30 of the fulfillment centers that power Amazon's e-commerce business have outbreaks of COVID-19, according to news reports and employee accounts. The most recent case in Los Angeles was reported Wednesday, when Amazon confirmed to City News Service that an employee at their warehouse in Atwater Village has tested positive for COVID-19. The mounting cases are sparking walkouts, frustration, and an unprecedented challenge for a tech company that finds itself at the center of the coronavirus pandemic.
Amazon says it is going to great lengths to protect employees on the front lines, but current and former workers who spoke with GeekWire for this story say its statements don't always match the experience on the warehouse floor. Employee concerns bubbled over in the form of walkouts at fulfillment centers in New York, Chicago, and Detroit this week, with workers demanding Amazon shut down facilities with confirmed cases for thorough cleaning.
The outbreaks and employee unrest come at a time when Amazon desperately needs all hands on deck. The company has been fielding a massive surge in orders in the weeks since the virus gained a foothold in the country. Many shipments are delayed, and consumers across the U.S. are unable to order groceries through the Amazon Fresh service.
Amazon executives are now navigating the responsibility of supplying thousands of Americans under isolation orders with items they need, mitigating virus outbreaks across their facilities, and keeping a worldwide delivery and logistics engine humming during a pandemic.
Meanwhile, workers in Amazon warehouses are facing difficult decisions and trade-offs of their own.
Inside Amazon warehouses
Frank Eliason works at an Amazon fulfillment center in New Jersey where two of his co-workers have tested positive for COVID-19. The 47-year-old is considered at-risk for the disease because he has diabetes. He also has two daughters at home who he worries about infecting.
"Employees are scared," he said. "I am scared. I do not want to bring this to my family. This is an unprecedented event. There is no playbook for employees or companies."
Amazon would not say how many warehouses have COVID-19 cases, but local news reports and a running list tracked in a private employee Facebook group indicate at least 30 of Amazon's 175 fulfillment centers are affected. Workers at several Amazon warehouses are organizing walkouts to demand that the company temporarily close facilities for cleaning. It's a position backed by Amazon Employees for Climate Justice, an activism group created by mostly white-collar workers at the company's Seattle headquarters.
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"To be honest, every facility that has positive cases in them need to be shut down and cleaned inside and out," said one Oklahoma City worker who asked not to be identified because he is concerned about retaliation from Amazon.
Amazon employees at a fulfillment center in Staten Island made the same demand when they walked off the job on Monday. Amazon fired the organizer of the demonstration, Christian Smalls, claiming he put his colleagues at risk by breaking quarantine. The New York protest was one of several around the country organized by increasingly uneasy Amazon warehouse workers.
"I am sitting here right now trying to decide if today is the day I will get sick," Eliason said. "Do I really want to go in? It is a question I ponder each day."
Eliason said he supports Amazon's decision to fire Smalls, "assuming the employee who was fired was asked to quarantine with pay. I worry each day of people coming in knowingly or unknowingly are sick."
Amazon consults with public health officials and medical experts when deciding whether to shut down a contaminated warehouse, according to spokesperson Timothy Carter.
"Our process also evaluates where the employee was in the building, for how long, how much time has passed since they were onsite, and who they interacted with, among other items," he said in a statement. "If someone hasn't been at the building for quite some time, they were onsite only briefly, or the area they were in was already deep cleaned several times as a regular course of business, we may not need to close."
Amazon's new protocol
Amazon has made more than 150 "significant process changes" in response to the COVID-19 outbreak, according to a blog post by worldwide operations CEO Dave Clark.
On Sunday, Amazon started screening employee temperatures at warehouses in New York and the Seattle area, sending anyone who registers above 100.4 degrees home. Clark said Amazon will roll out temperature screening across its facilities, including Whole Foods stores, next week.
Amazon expanded its sick policies, providing two weeks paid time off for employees who test positive for COVID-19 or are asked to quarantine due to exposure. The company is also offering unlimited unpaid time off to all employees.Clark said that disinfectant wipes and hand sanitizer are readily available in all fulfillment centers, though some workers say they do not have access to those supplies.
"They're not supplying us with the proper PPE or cleaning products to ensure that our areas are cleaned after every shift," said the Oklahoma City worker who asked to remain anonymous. "I have been bringing my own Lysol to ensure my area is cleaned. We were told each department and station would have their own products to clean. Nothing has shown up."
There is a global shortage of personal protective gear (PPE) that even Amazon's vast supply chain has struggled to fill. Amazon ordered millions of masks for fulfillment center employees weeks ago and those supplies are starting to arrive, according to Clark. Any N-95 masks that are critical for healthcare workers will be donated or sold to medical providers at cost. Amazon is requiring warehouse workers to maintain a distance of at least six feet from one another and has canceled daily stand-up meetings which bring employees into close proximity with each other.
It's difficult to conceptualize the sheer size of an Amazon fulfillment center, which can range from 400,000 to 1 million square feet. A typical Amazon warehouse is comparable to 10 football fields lined up.
"Cleaning and sanitizing of an entire warehouse (let alone multiple warehouses) seems incredibly daunting," said Scott Meschke, a microbiologist specializing in pathogens at the University of Washington's occupational health sciences department, in an email.
The Centers for Disease Control do not have specific cleaning guidelines for warehouses, but recommend other facilities close off areas visited by infected people, ventilate, and "wait 24 hours or as long as practical before beginning cleaning and disinfection."
"A potential problem with shutting a facility for cleaning is that in the absence of a more holistic plan to control spread, the likelihood is that contamination may be reintroduced by infected workers," Meschke said.
A lifeline in isolation
Washington, California, New York, and other jurisdictions across the country have implemented mandatory isolation orders, compelling thousands of consumers to turn to online shopping when they might've otherwise visited a store.
Last month, Amazon announced plans to hire 100,000 new warehouse workers to cover for sick employees and respond to the surge in orders from customers practicing social distancing. Clark said Thursday that the company has already hired 80,000.
Analysts at Jefferies conducted two surveys of about 630 U.S. adults on March 10 and March 27 that show how the pandemic is influencing demand for Amazon's products and delivery horsepower. Amazon was the only online retailer that saw consumers increasing their spending, according to the surveys. The percentage of consumers who said they are spending more on Amazon jumped from 14 percent to 34 percent. Consumers are spending less on other sites, like eBay, Chewy, and Etsy, according to the analysis.
Though the shift to online shopping is nothing new, its acceleration due to the pandemic has been disastrous for brick-and-mortar retail. Nordstrom, Macy's, Kohl's and others are shuttering stores and furloughing employees as traditional shopping grinds to a halt. The broad social distancing orders driving this trend are temporary, but the shift to online shopping may not be.
"This is not simply predicated on a one-time bump in the first and second quarter as consumers have been forced to stay home … we believe the current backdrop provides for incremental comfort and awareness of purchasing basic goods at home, which will have [a] lasting impact," write analysts at William Blair.
But the surge in demand may not be the financial buoy for Amazon that it appears to be at first glance. Amazon is spending more than $350 million on its response to the pandemic, according to Clark.
"We expect to go well beyond our initial $350 million investment in additional pay, and we will do so happily," he said.
Amazon increased its minimum warehouse wages by $2 to $17 per hour last month and fulfillment centers temporarily stopped accepting shipments of non-essential items so that the company can restock household goods and medical supplies.
"This could be a headwind for Amazon, partially offset by greater-than-expected demand in grocery items and other staples, including health-related items," wrote Mark Mahaney, an analyst with RBC Capital Markets. That firm lowered its revenue estimates for Amazon this year due to the impact of the coronavirus.
Still, Mahaney believes "Amazon is better positioned than most other names in our coverage universe to weather this macro uncertainty given the diversity of its business."
The sprawling Amazon empire includes its lucrative cloud arm, growing advertising business, and grocery store chain.
Amazon's relative resilience could reshape the e-commerce landscape when the coronavirus threat passes. Millions of Americans are reporting job losses at a time when Amazon is hiring. Retail stores are shutting down at a time when Amazon's demand is surging. Though the tech giant is not immune to economic turmoil, it could come out of the crisis in a more dominant position than before.
This story originally appeared on GeekWire.
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This Startup Wants to Make Testing for ADHD and Dyslexia as Common as Going to an Optician
Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.
Here’s how Jack Rolo describes his childhood: He was good at chess, and bad at spelling. He was good at math, and bad at reading. Rolo went on to study physics at Durham University in his native England—and despite often struggling in his courses, it wasn’t until after he graduated that he was diagnosed with dyslexia, a common language processing disorder that affects reading.
Rolo’s experiences informed his founding of Polygon, a Santa Monica-based diagnostics startup that emerged from stealth on Friday with $4.2 million in funding, and the goal of better diagnosing dyslexia, ADHD and other learning-related disabilities. The funding includes a $3.6 million seed round led by Spark Capital, as well as $600,000 in pre-seed funding led by Pear VC.
“It really is a product I wish I'd had access to at an earlier age myself,” Rolo told dot.LA.
After moving to California to earn his MBA degree at UC Berkeley, Rolo met his co-founder Meryll Dindin, who now serves as Polygon’s chief technology officer. Together, they’ve built a platform that aims to partner with schools to test children for a myriad of disabilities that may affect academic performance. (The startup claims it’s already teamed with schools in California, but did not disclose which.) Rolo says he envisions that these assessments become as ubiquitous as vision and hearing exams: that every student, regardless of age, background or academic performance, will be tested.
As is, testing for disorders like ADHD and dyslexia often depends on parents, teachers or pediatricians observing a child, detecting something amiss and intervening. There are problems with this method; for instance, girls are chronically underdiagnosed with ADHD because it presents itself differently than it does for boys. Teachers juggling crowded classrooms may not be able to perceive why a specific child is falling behind. And Black and Latino children are often overlooked when it comes to diagnosing disabilities.
“Common roots of referral are teachers, and typically that's flagged because they'll see the student failing,” Rolo said. “That's part of the problem—that this then becomes almost a wait-to-fail approach, when ideally you want to pick these things up proactively.”
Polygon employs full-time psychologists who evaluate students through a telehealth platform. After undergoing a range of standardized assessments and interviewing their parents and teachers, a student who is diagnosed will receive an "Individualized Education Program," a schooling curriculum tailored toward their disabilities.
Assessments start at $995, which Polygon says is up to five times cheaper than traditional disability testing alternatives. The company plans on driving that cost down further by collecting a large data sample of assessments and building machine learning technology to “pre-screen” students; those who are flagged would then undergo more extensive testing.
“Ultimately, what we're trying to move toward is a model quite similar to the optician, where everyone gets the evaluation,” Rolo said. “Yes, assessments are still not accessible for all families just yet—but this is the beginning, and we hope to drive this cost down way further over time.”
Polygon said the new funding will go toward expanding beyond California and growing its network nationally.
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Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.
ZipRecruiter CEO Ian Siegel on How the Job Market Has Shifted
Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.
On this episode of Office Hours, host Spencer Rascoff talked with ZipRecruiter CEO and founder Ian Siegel about how he built his company, the lessons he's learned along the way and how he's seen the pandemic drastically reshape the job market—probably for good.
Siegel moved to L.A. to be a writer in Hollywood. But he quickly realized he hated it. Instead, he moved into the fledgling online division at Warner Bros., From there, he found himself working at a series of VC-backed startups that became successful. As a result, he became known in the industry as an expert in taking online businesses that had plateaued and figuring out a way to help them grow. He said he hated every minute of it.
“What you are in that situation is you're an agent of change. And what I learned is you can be good at that, but no one likes you because everybody fears change.”
Instead, Siegel worked up the courage to start his own business.
“Why do I let people pay me such a small amount of money to turn around these businesses?,” he asked himself. “If I'm so good at this, why don't I just start my own and build it right from the very beginning. And that's what ultimately gave me the conviction to go launch ZipRecruiter.”
His time working at young startups too small to have their own HR departments gave Siegel the idea. After posting the same job position across multiple websites and printing out every single resume submitted, he realized he was facing a problem technology is built to solve.
“I just wanted a magic button that I could push. And it would send a job to all job boards at once, and then all the candidates from all those different sites would go into one easy to review list. That's exactly what we built with the first version of ZipRecruiter,” said Siegel.
Over time, ZipRecruiter’s mission has changed, he said, from a company aimed at solving a single pain point to a company trying to reinvent how the labor market functions. That, he added, is orders of magnitude more difficult, because “you are retraining America or potentially the world on a new way to do something.”
“And now you are knife fighting in the jungle, you are trailblazing,” he added. “I don't worry about how anybody in the current ecosystem operates. I'm truly fundamentally trying to change the labor market in the United States right now.”
Siegel said he’s seen the job market drastically change over the past couple years, as the pandemic accelerated the move to remote work and hybrid and remote positions surged. Fewer than 2% of jobs on ZipRecruiter had the words “remote” in them before COVID-19 stuck. Now, 60% of applicants say they’re seeking remote or hybrid work, and 12% of the jobs listed on the site offer a remote option—and that number is growing.
That reality has changed how he runs his own business.
“What I've done at ZipRecruiter is accept change,” Siegel said. “We are fully embracing remote. I believe remote is not only here to stay, it's a huge benefit.”
That, he says, is because employees and employers both save time on driving and grooming. They save money on gas and parking. The office, he added, will still have a purpose, but it will probably be more for building culture, and less for work.
"It'll be a much smaller space entirely designed around fun," he said. "No one will ever go in there every day purely for the purpose of doing their job, probably ever again."
One of the lessons Siegel said he’s learned as a serial entrepreneur is to make sure the work you pick is meaningful to you.
“It turns out every business takes the same amount of time, which is all your time,” he said. “So be thoughtful about how you spend it. Pick work that's meaningful for you. Pick work that has scale opportunity to it and that you're going to be excited to go into every day,”
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Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.
Riot Games Doubles Down on Mobile With ‘Aim Lab’ Investment
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Riot Games has invested in virtual shooting range developer Statespace, accelerating the Los Angeles video game publisher’s efforts to dominate the mobile gaming space.
Riot did not disclose terms of the investment but told dot.LA it took a “minority stake” in New York-based Statespace.
Statespace’s main product is a platform called Aim Lab, a free-to-play virtual shooting range that first-person shooter gamers can use to warm up their skills before heading into a competitive match. Statespace CEO Wayne Mackey told the Washington Post that the plan is to leverage its relationship with Riot to bring Aim Lab onto mobile platforms—a transition that he said is “imminent” and could happen as soon as next month.
Riot, in turn, wants to integrate Aim Lab as part of its growing base of titles with hardcore fan bases, like its first-person shooter game “Valorant” or its multiplayer online battle arena (MOBA) game “League of Legends: Wild Rift.” The idea is that esports players could use Aim Lab to warm up with weapons used in the actual games, and also for a postmortem on a match that they lost by giving them a chance to review footage of their defeat and figure out how to improve, Mackey said.
“We look forward to collaborating with Statespace on developing innovative training and coaching tools for Valorant and MOBA players around the world to improve their skills at every level,” Jake Perlman-Garr, Riot’s global head of corporate development, said in a statement Thursday.
Riot has been doubling down on mobile gaming in recent years. The publisher has released three mobile games in the last two years—including “Wild Rift,” its most popular mobile title—and has invested in mobile gaming companies like Double Loop Games and Bunch. That focus has come as mobile gaming has emerged as one of the industry’s fastest-growing sectors.
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Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him