AmazonScience/document-haystack

1112Failure to attract or retain qualified employees could materially adversely affect us.3We depend on the skills and continued service of our large workforce. We also regularly hire a large number of part-time 4and seasonal workers. We must be able to attract, develop and retain a large and diverse global workforce. If we are unable to 5hire, properly train or retain qualified employees, we could experience higher labor costs, reduced revenues, further increased 6workers' compensation and automobile liability claims costs, regulatory noncompliance, customer losses and diminution of our 7brand value or company culture, which could materially adversely affect us. Our ability to control labor costs has in the past 8been, and is expected to continue to be, subject to numerous factors, including labor-related contractual obligations, turnover, 9training costs, regulatory changes, market pressures, inflation, unemployment levels and healthcare and other benefit costs.10In addition, we strive to lower our cost to serve, including labor costs, through various strategic initiatives. Our inability to 11continue to retain experienced and motivated employees through the execution of these initiatives may also materially adversely 12affect us.13Strikes, work stoppages or slowdowns by our employees could materially adversely affect us.14Many of our U.S. employees are employed under a national master agreement and various supplemental agreements with 15local unions affiliated with the International Brotherhood of Teamsters (the "Teamsters"). In the third quarter of 2023, a new 16national master agreement with the Teamsters, which runs through July 31, 2028, was ratified. Our airline pilots, airline 17mechanics, ground mechanics and certain other employees are employed under other collective bargaining agreements. In 18addition, some of our international employees are employed under collective bargaining or similar agreements. Other 19employees may choose to organize in the future. Actual or threatened strikes, work stoppages or slowdowns by our employees 20could adversely affect our ability to meet our customers' needs. As a result, customers have reduced, and in the future may 21reduce, their business or stop doing business with us if they believe that such actions or threatened actions may adversely affect 22our ability to provide services. We may permanently lose customers if we are unable to provide uninterrupted service, and this 23could materially adversely affect us. The terms of collective bargaining agreements also may affect our competitive position 24and results of operations. Furthermore, our actions or responses to any such negotiations, labor disputes, strikes or work 25stoppages could negatively impact how our brand is perceived and our reputation and have adverse effects on our business, 26including our results of operations.27We maintain significant physical operations. Increases in operational security requirements impose substantial costs on us 28and we could be the target of an attack or have a security breach, which could materially adversely affect us.29As a result of concerns about global terrorism and homeland security, various governments have adopted and may adopt 30additional heightened security requirements, resulting in significantly increased operating costs. Regulatory and legislative 31requirements may change periodically in response to evolving threats. We cannot determine the effect that any new 32requirements will have on our operations, cost structure or operating results, and new rules or other future security requirements 33may significantly increase our operating costs and reduce operating efficiencies. Regardless of our compliance with security 34requirements or our own security measures, we could also be the target of an attack or security breaches could occur, which 35could materially adversely affect one or more of our operations, or our business.36A significant cybersecurity incident, or increased data protection regulations, could materially adversely affect us.37We rely on information technology networks and systems and other operational technologies, including the internet and a 38number of internally-developed systems and applications, as well as certain technology systems from third-party vendors 39(collectively referred to as "IT") to operate our business. For example, we rely on these technologies to receive package level 40information in advance of the physical receipt of packages, to move and track packages through our operations, to efficiently 41plan deliveries, to execute billing processes, and to track and report financial and operational data. Our franchise locations and 42subsidiaries also rely on IT systems to manage their business processes and activities.43IT and other systems (ours, as well as those of our franchisees, acquired businesses, and third-party service providers) 44have been and will continue in the future to be susceptible to damage, disruptions and shutdowns due to programming errors, 45defects or other vulnerabilities, power outages, hardware failures, misconfigurations, computer viruses, cyber-attacks, 46encryption caused by ransomware or malware attacks, exfiltration of data, attacks by foreign governments, state-sponsored 47actors, or criminal groups, theft, misconduct by employees or other insiders, telecommunications failures, misuse, human errors 48or other catastrophic events. In recent periods, the frequency and sophistication of cyber-attacks have increased and are 49expected to continue to increase, including as a result of state-sponsored cybersecurity attacks during periods of geopolitical 50conflict, such as the ongoing conflicts in Ukraine and the Middle East. In addition, the rapid evolution and increased adoption 51of artificial intelligence technologies may intensify our cybersecurity risks. Accordingly, we may be unable to anticipate these 52techniques or to implement adequate measures to recognize, detect or prevent the occurrence of any of the events described