Amazon has stated that it would close three more than 30 warehouses in the United Kingdom. According to The Guardian, this move will result in the loss of 1,200 jobs.

Amazon's Fulfilment Centre In Hemel Hempstead
(Photo : Jeff Spicer/Getty Images)
The Amazon Fulfilment Centre prepares for Black Friday on November 25, 2015 in Hemel Hempstead, England.

Facilities to be Closed

The firm will provide jobs to employees who formerly worked at its operations in Doncaster, Hemel Hempstead, Hertfordshire, and Gourock, Western Scotland.

Since there is no other Amazon factory near the Gourock location, as there is in Doncaster and Hertfordshire, it is expected that a few of the site's 300 workers would choose to migrate.

Amazon will soon build two new delivery facilities in the UK: one in Peddimore, in the West Midlands, and another in Stockton-on-Tees, in County Durham. Following this, the company is expecting to hire 2,500 people.

Amazon maintained its commitment to its customers, workers, and communities throughout the UK, as stated in a recent comment.

A representative said they are constantly analyzing their network to ensure it suits their business goals and enhances the experience for their staff and consumers.

"As part of that effort, we may close older sites, enhance existing facilities, or open new sites, and we've launched a consultation on the proposed closure of three [fulfillment centers] in 2023."

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Recent Rounds of Layoffs

The prospective layoffs follow Amazon's announcement last week that it intended to eliminate more than 17,000 employees worldwide, or about 70% of the workforce, with most at corporate headquarters. 

When the company announced layoffs in November 2022, it was initially estimated that only 10,000 individuals would be affected by the changes. Therefore, the revised statistics are a significant increase.

Reports claim this will begin in the following weeks, marking the largest decrease in total reported in the previous year from a tech major.

Since the layoffs began, Amazon has admitted that it recruited too many people during the pandemic, when it was at its peak.

The layoffs are in an attempt to become more efficient under Andrew Jassy, who assumed the CEO role in the summer of 2021.

Amazon
(Photo : Stefano Guidi / Stringer)

Hurdles in Prior Years

With consumers cutting down on spending and the online retailer facing worldwide economic uncertainty, the company has made some adjustments. 

As it has branched out into other industries, such as grocery, own-label technology, and fashion, the company has hired more people in recent years.

Because of a lack of personnel, particularly in higher-paying, specialized positions like forklift and heavy lorry drivers, Amazon has had to raise wages. As expected, it drove up expenses at its warehouses and delivery operations.

Workers at the firm's massive Coventry facility have voted overwhelmingly in favor of striking by the end of January. This is after the corporation refused their demand for an increase in pay to £15 or about $18 per hour via a ballot for industrial action.

See Also: Amazon's Stock Loses 51% of its Value in 2022, Recording its Worst Year Since 2000

Trisha Andrada

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