Amazon will create more than 4,000 permanent jobs to become one of the UK’s top employers, despite fears that rising inflation will hit consumer demand.
The UK expansion plans are being made amid a sharp slowdown of overall revenue growth for global ecommerce groups, which was reported at its lowest rate since April’s dotcom crash.
The company stated that the company will be one of the UK’s top 10 private sector employers thanks to its new hires in 2018. Amazon claims it wants 75,000 permanent workers by the end 2022.
As regulators around the globe have scrutinized its market power, the $1.1 million company has frequently cited its role in creating jobs.
But the company also admitted the 4,000 jobs planned this year represented a return to “more normal levels of growth”. Amazon UK created 10,000 jobs in 2020 and added another 10,000 in the following year. 25,000In 2021.
Amazon announced that the hiring spree was triggered by a boom in sales after the coronavirus epidemic, when many people were left at home. But Amazon stated later that it now has too many employees and will seek to get rid of some warehouse space.
Analysts wonder how Amazon will do in an environment where shoppers are less likely to spend due to steeply rising prices. Already, other retailers warned of slowing sales as well as signs of a slowing consumer market. This week’s Prime Day sales event will see a new surge in sales for the tech group.
Despite these pressures, Amazon plans to open two new “fulfilment centres” — its description of the large warehouses that collect and send out its goods — in the second half of this year in Knowsley, near Liverpool, and Wakefield in West Yorkshire.
It has also announced plans to spend more than £1.8bn in the next two years building and operating data centres in the UK through Amazon Web Services. In partnership with Shepperton Studios, the UK-based Shepperton Studios, the group expects to increase its investment through Prime Video media.
The company’s new roles will be spread across the UK, including at the new centres in Wakefield and Knowsley. Amazon pays a minimum of between £10 and £11.10 per hour in the UK, depending on the location, more than the UK’s national living wage.
Amazon is also creating new jobs at its Fresh Stores that use “Just Walk Out” technology, with 19 open across the UK, including the first outside London in Sevenoaks, Kent. Amazon says that more store openings are planned for the year.