Amazon to cut 1,200 jobs with closure of three sites
AMAZON is to shut three UK warehouses, putting 1,200 jobs at risk, as the online retail giant restructures its operations in Britain during an economic slowdown.
The retail giant said it planned to close its fulfilment centres in Hemel Hempstead, Herts; Doncaster, South Yorks; and Gourock, Inverclyde. The restructuring is in addition to 18,000 layoffs announced by the US retail giant last week amid plans to cut corporate staff worldwide.
Job losses are expected to include roles in the UK, including at its bricks and mortar grocery shops. Amazon has been cutting jobs and trimming budgets as it grapples with a slowdown in consumer spending worldwide.
The company issued lower-thanexpected growth forecasts in its most recent financial results and its online retail division fell to a loss. In just one day, $200bn (£164bn) was wiped from its value after it announced the results. Staff at the three UK warehouses will be offered jobs at other Amazon sites, the company said, although many of these will require them to relocate.
It is understood about 500 staff in Hemel Hempstead will be offered work in Dunstable, 12 miles away, while 400 in Doncaster will have the option to transfer to the nearby international railport. Staff in Scotland will be offered relocation and training, but there is no nearby Amazon facility. Ronnie Cowan, the Scottish National Party MP for Inverclyde, said the job cuts were a “serious blow” to the region. He said: “Amazon has said it will try to redeploy workers but has so far given me no firm commitments.”
The Greenock Telegraph reported that Amazon bosses admitted there would be “limited opportunities” for staff located in Scotland. Its Gourock site was opened in 2004. Amazon has about 75,000 permanent staff in the UK and also takes on seasonal workers.
An Amazon spokesman said: “We’re always evaluating our network to make sure it fits our business needs and to improve the experience for our employees and customers. 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 fulfilment centres in 2023.”
Amazon said that despite the job cuts, it still planned to create a total of 2,500 new jobs in the UK by opening two centres, in the West Midlands and at Stockton-on-tees, Co Durham.