Amazon to close 3 warehouses in the UK

Amazon plans to close three distribution centers in the United Kingdom, the company’s biggest market in Europe. After investing heavily during the pandemic ecommerce boom, the retail giant is experiencing a dip in demand.

Like many companies in the ecommerce sector, retail giant Amazon faces the effects of inflation and declining consumer demand. For this reason, new warehouses in Spain were recently delayed until 2024.

3 of 30 UK warehouses closing

Now, Amazon plans to close three warehouses in the United Kingdom this year. The plan concerns older sites: Hemel Hampstead, Doncaster and Gourock. A shutdown of these distribution centers will impact 1.200 jobs. According to Amazon, workers will be given the chance to transfer to other warehouses. The company currently owns 30 locations in the United Kingdom.

Amazon is scaling back in response to a dip in demand.

Scale back after heavy investment

Earlier this month, Amazon announced cutting 18.000 roles worldwide. According to the retailer, closing the doors of the British dc’s is a separate measure. While the company invested heavily in its distribution network over the last few years, it is now scaling back in response to high inflation and a dip in demand. Amazon’s stock price has nearly halved in the past year amid stock market upheaval, especially in the tech sector.

Amazon’s biggest European market

The shutdowns are notable, as the United Kingdom is Amazon’s largest market after the United States. In fact, the retail giant has had plans to open 2 new warehouses over the next three years in central and north east England. This plan is said to add 2.500 jobs.