Amazon.com Inc. plans to shut down three of its UK warehouses this year in an operation that will impact about 1,200 employees.
(Bloomberg) — Amazon.com Inc. plans to shut down three of its UK warehouses this year in an operation that will impact about 1,200 employees.
Hemel Hempstead, Doncaster and Gourock will shut this year, making way for two new fulfillment centers, Amazon said in a statement on Tuesday. The new sites will ultimately create 2,500 jobs and employees at the affected warehouses will be offered jobs at other facilities, the company said.
The Seattle-based e-commerce giant said earlier this month that it plans to eliminate more than 18,000 jobs, representing about 1% of total employees, in the biggest layoffs in its history. Amazon is adjusting to a dramatic slowdown in online shopping after consumers resumed their pre-pandemic retail habits, and the company has delayed warehouse openings and halted hiring in its retail group.
Read More: Amazon to Slash More Than 18,000 Jobs in Escalation of Cuts (4)
The two new sites will be in Peddimore in the West Midlands, and Stockton-on-Tees in County Durham, and are set to open in the next three years, a spokesman said.
The GMB union called the move a “kick in the teeth” for staff and said it was unreasonable to ask employees to move to a different location, “which may be many miles away.”
GMB members have voted to strike at Amazon’s warehouse in Coventry, a first for the UK, in a walk out scheduled for Jan. 25. The strike over pay won’t directly affect Amazon customers, and Amazon is “proud” of the wages it offers, the company said. Amazon said its packages start at a minimum of £10.50 ($12.75) to £11.45 per hour, depending on location.
The UK’s national living wage, for adults 23 years old and above, will rise to £10.42 in April from £9.50.
(Updates with location of new sites in fourth paragraph)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.