The U.S. technology company plans to replace three aging warehouses with two large fulfillment centers and acknowledges that it will be more difficult for some affected employees to find new employment.
Amazon has announced plans to close three warehouses in the United Kingdom. A move that will impact 1,200 jobs but will open two new major fulfillment centers.
It has been proposed to close sites in Hemel Hempstead, Doncaster, and Gourock, in the west of Scotland.
A spokesperson stated that all affected employees would be offered positions at other existing Amazon locations.
A union representing some workers at the Hemel Hempstead site expressed dismay at the decision and skepticism regarding the likelihood of finding suitable alternative employment for each individual affected.
Amazon announced that its new locations in Peddimore, West Midlands. And Stockton-on-Tees, North East, will create 2,500 employees over the next three years.
The firm stated: “We continually evaluate our network to ensure it meets our business requirements and to enhance the employee and customer experience.
“As part of this initiative, we may close outdated sites, improve existing facilities, or build new sites. And we have started a consultation regarding the potential closure of three fulfillment centres in 2023.
Amazon UK warehouse reorganisation threatens 1,200 jobs
“In addition, we intend to open two more fulfillment centers over the next three years, producing 2,500 new employees.
“All affected employees will have the opportunity to transfer to other facilities. And we remain committed to our customers, staff, and communities throughout the United Kingdom.”
The Hemel Hempstead location has 500 employees, while the Doncaster location has 400.
Gourock is home to the smallest number of Amazon employees, 300. But the surrounding area offers fewer opportunities for alternative employment.
The corporation acknowledged this and stated that retraining and reskilling opportunities would be provided as part of efforts to acquire new employment.
Steve Garelick, Hemel Hempstead GMB union officer, stated: “Disappointment for the workers, disappointment for the city. And grave anxiety that this is only the beginning for the local community.
Some employees may be offered alternate positions, although relocating to Luton, Dunstable, or Milton Keynes is impractical.
The statement followed a group decision last week to eliminate 18,000 employees globally, making Amazon the most recent US technology company to reduce its workforce in response to the deteriorating economy.
Amazon has around 1.5 million employees worldwide, with 300,000 in corporate positions most likely to be affected by the global layoffs.