On January 10, 2023, Amazon shared that it has plans to shut down three UK warehouses, which will impact almost 1,200 employees, according to a PA Media report. However, these workers will be given a chance to transfer to other units.
The warehouses affected in Hemel Hempstead, Doncaster and Gourock are the older British warehouses.
The Amazon UK market is one of its largest outside the USA. Amazon operates 30 large warehouses all over the UK and plans to open two new warehouses in central and north east England over the next three years. This move is expected to create 2,500 new jobs.
Meanwhile, additionally, Amazon’s UK operations have faced calls for improved wages from warehouse workers, with approximately 300 individuals planning to go on strike on January 25.
Representatives of Amazon did not instantly respond to the request for comments.
In January 2023, itself, the company plans to lay off 18,000 employees globally. While layoffs at Amazon had begun last year, in November itself, the numbers were expected to be around 10,000.
Now, it seems rising inflation and the slower-than-expected pace of growth are forcing it to cut more jobs and reduce costs, just as many organisations across the world are doing. Seattle-based Amazon increased pay packages last year to attract quality talent.
The company has also stopped corporate hiring in its retail business, closed down its telehealth service along with various call centres in the US, and reportedly cut budgets for its delivery robot project.