The tech giant said its revenue rose 7% from the same period last year to $116.4 billion, slightly beating analysts’ forecasts but slower than the 9% growth in last months of last year. The company expects revenue growth to slow further in the next quarter, anticipating a growth rate of between 3% and 7%.

Amazon reported a net loss of $3.8 billion for the quarter ended March 31, a sharp drop from the same period last year, when it posted a profit of $8.1 billion. It was also a big miss from the $4.4 billion profit that analysts polled by Refinitiv had expected.

Excluding Rivian’s loss, Amazon would have made a profit of $3.8 billion, which would still be below analysts’ expectations, according to Refinitiv.

Amazon (AMZN) shares fell about 10% in after-hours trading after the results.

“The pandemic and subsequent war in Ukraine has brought about unusual growth and challenges,” Amazon CEO Andy Jassy said in a statement.

Jassy referenced Amazon’s skyrocketing growth in its consumer business during the pandemic and the “doubling” of the company’s retail network over the past two years.

“Today, as we no longer chase physical capacity or staffing, our teams are focused squarely on improving productivity and profitability across our fulfillment network,” a- he added. “It may take some time, particularly as we face continued inflation and supply chain pressures, but we are seeing encouraging progress on a number of dimensions of customer experience.”

The company also announced that Prime Day, its annual sales bonanza, will take place in July in more than 20 countries.

On an earnings call, Amazon chief financial officer Brian Olsavsky said rising inflation, fuel prices and labor constraints added $2 billion to costs per month. compared to last year.

“The cost of shipping a container overseas has more than doubled from pre-pandemic rates,” he said. “The cost of fuel is about one and a half times higher than a year ago.”

The ramp-up of the Omicron variant towards the end of 2021 led to “a substantial increase” in the number of employees going on leave, prompting Amazon to increase hiring to compensate for absences, Olsavsky said. But when workers returned when the swings subsided, “we quickly went from understaffed to overstaffed,” he added. This resulted in “low productivity” adding another $2 billion in costs, he said.

Amazon’s profit slump comes as the company continues to face pressure from its warehouse workers over issues such as pay and working conditions. Workers at a warehouse in Staten Island, New York, voted to form the e-commerce giant’s first-ever U.S. union earlier this month. Amazon has since filed an appeal, calling for a rerun of the entire vote.

A separate Amazon union election in Bessemer, Alabama also recently concluded with results too close to announce.

Both labor efforts grew out of worker frustrations with Amazon’s treatment of workers amid the pandemic and were also driven in part by heightened national attention to issues of racial justice and labor rights.

Amazon later announced that it would conduct a racial equity audit led by former US Attorney General Loretta Lynch.