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Insider UK
Business
Henry Saker-Clark & Peter A Walker

Amazon consults on closure of Gourock warehouse

Amazon has launched consultations over the closure of three UK warehouses, in a move which will impact 1,200 jobs.

Sites in Hemel Hempstead, Doncaster and Gourock have been proposed for closure.

Around 300 staff work at the 300,000 sq ft Faulds Park site in Gourock.

It is understood that all workers at the sites will be offered roles at other Amazon locations.

Amazon has also revealed plans for two new major fulfilment centres in Peddimore and Stockton-on-Tees, which should create 2,500 jobs over the next three years.

A spokesman for 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.”

Scottish Enterprise stated that it is in an “active discussion with the company to better understand the issues” around its decision.

“The people affected by this development are the immediate priority and the Scottish Government will do everything in its power to help those affected through our initiative for responding to redundancy situations, Partnership Action for Continuing Employment (Pace).

“Our Pace team has already contacted the company to offer Pace support in the unfortunate event it should be necessary.”

Steve Garelick, an organiser with the GMB union, said: “This is a real kick in the teeth for Amazon staff who worked themselves into the ground during the festive rush.

“Hard-up Amazon workers can’t suddenly be expected to up sticks and move to a different fulfilment centre which may be many miles away. local workers who may not be in a position to take roles so far away from where they live.

“Amazon has failed to bring a stable employment model due to their long-standing health and safety issues and poor workplace practices.”

Scottish Labour MSP for West Scotland Neil Bibby said: “For 19 years, Amazon has been a major source of jobs in a part of Scotland with high unemployment and for 300 people to find out they are out of a work so soon after Christmas is a hammer blow.

“The Scottish Government should leave no stone unturned in trying to minimise the impact of these job losses and help people back into employment.

“We know Amazon has benefitted from significant public funds in the past and is disappointing they have decided to up and leave a community which has served them so well.

“We need full transparency on how much Amazon has been given, for what purpose and what conditions were attached to these funds.”

The Amazon warehouse in Gourock (DAILY RECORD)

Last week, Amazon revealed plans to cut more than 18,000 jobs worldwide in the largest layoffs programme in its history.

The world’s largest retailer, which employs around 1.5 million people globally, had warned in November of job cuts, amid reports it was targeting 10,000 roles.

the move follows an in-depth review amid the pressure of dampening demand and recession fears.

Amazon previously stated that the roles affected include those across its online and bricks and mortar stores, such as Amazon Fresh and Whole Foods, as well as back office functions such as its human resources division.

In the UK, Amazon has more than 75,000 employees across the country and has been expanding rapidly, with 25,000 people taken on in 2021 amid the boom in online shopping during the pandemic and another 4,000 hired in 2022.

Alongside its online retail operation, it also has 19 Amazon Fresh stores and seven Whole Foods Market outlets in the UK.

Chief executive Andy Jassy - who took over from founder Jeff Bezos in July 2021 - said in a note to employees, which was made public: “These changes will help us pursue our long-term opportunities with a stronger cost structure.”

He blamed the move on an “uncertain economy”, adding “we’ve hired rapidly over the last several years”.

The group expects to tell staff directly affected by the cuts from 18 January and said it is offering a separation payment, transitional health insurance benefits, and placement support.

Jassy added: “Companies that last a long time go through different phases, they’re not in heavy people expansion mode every year.”

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