By James Simons-
Amazon has revealed plans to shut three UK warehouses, a decision that will affect 1,200 jobs, but open two new major fulfilment centres.
Sites in Hemel Hempstead, Doncaster and Gourock, in the west of Scotland, are scheduled for closure under the plans.
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It is not the first time Amazon has taken on staff in recent years in pursuit of expansion into new fields, including groceries, own-label technology and fashion.
Costs at Amazon’s warehouses and delivery operations have risen as shortages of workers, especially for skilled roles such as forklift truck and heavy lorry drivers, have forced the company to increase pay.
According to reports, workers from the facilities in Doncaster, Hemel Hempstead in Hertfordshire and Gourock in western Scotland will be offered roles at other Amazon locations.
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The closures of the older sites come as Amazon prepares to open new delivery warehouses in Peddimore in the West Midlands and Stockton-on-Tees, County Durham, which will employ 2,500 people.
Amazon said the company remained committed to its customers, employees, and communities across the UK.
A spokesperson 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 announced its plans to cut 18,000 jobs around the world, mainly in its head offices – in an effort to become more efficient under Andrew Jassy, who took over as chief executive in summer 2021.
Workers at the company’s vast depot in Coventry are poised to go on strike on 25 January demanding pay of £15 an hour, after securing a historic yes vote in a ballot for industrial action.
A union representing some of the workers at the Hemel Hempstead site expressed disappointment over the decision and was sceptical about the prospect of acceptable, alternative work being found for each person affected.
Amazon said its planned new sites – at Peddimore in the West Midlands and Stockton-on-Tees in the North East – would result in the creation of 2,500 jobs over the next three years.
The company 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.
“We also plan to open two new fulfilment centres creating 2,500 new jobs over the next three years.
“All employees affected by site closure consultations will be offered the opportunity to transfer to other facilities and we remain committed to our customers, employees and communities across the UK.”
Gourock is home to the fewest number of employees, at 300, but it has less scope for alternative work in the surrounding area within Amazon.
Steve Garelick, GMB union officer for Hemel Hempstead, said: “Disappointed for the workers and disappointed for the town and a deep concern this is the thin end of the wedge for the local area.
“Some workers may be offered alternative roles but decamping to Luton, Dunstable or Milton Keynes isn’t as practical as you might think.”
The announcement followed a group decision last week to axe 18,000 jobs globally, making Amazon the latest US tech firm to slash its workforce in the tougher economy.
Amazon has more than 1.5 million employees around the world – with 300,000 in corporate roles which were most likely to be affected by the worldwide cuts
Some of its staff have in the past complained about being overworked amid poor working conditions, claims disputed by Amazon , but the company’s recent plans will come as bad news to some of its staff, but brilliant news to new ones to be recruited as part of its wider vision.
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