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| Amazon could run out of work by 2024 |
According to a leaked internal memo, Amazon is facing a looming crisis that will lead to depletion of its warehouse staff in the United States by 2024.
The memo includes internal research from 2021 that predicts that the e-commerce giant's impending business crisis could hit some regions faster than others.
For example, the memo estimates that Amazon could exhaust its workforce in Phoenix, Arizona, by the end of 2021 and in California by the end of 2022.
The pool of available employment is calculated based on factors such as income level and proximity to existing or proposed Amazon facilities.
In this case, the online retailer's service quality, growth plans, and e-commerce control may be at risk.
The report urges the company to take action to fill future employment gaps. This includes increasing wages to retain existing employees and attract new employees.
It also recommends increasing warehouse automation. The report's authors wrote that if we continue business as usual, Amazon's network labor available in the US will run out by 2024.
“The leaked document is not an accurate assessment of the employment situation,” wrote Amazon spokeswoman Rina Lunak, Amazon’s head of global operations and field communications. “There are many draft documents in the company on many topics to test hypotheses and consider many possible scenarios.” “…but it is no longer used in decision-making. This leaked document is one of them.”
"This does not represent the actual situation," she added. "We will continue to hire staff in Phoenix, California, and across the country."
Unions may not pose the biggest threat to Amazon
Amazon bought Kiva Systems in 2012 and has invested heavily in automation. But Amazon warehouse bots can't handle advanced fulfillment tasks that only humans can do.
Human labor was once a rich resource for companies. The tech giant is the second largest private employer in the United States. It is also the largest private employer in many US states and cities.
Last fall, the company announced plans to hire 125,000 people, roughly the size of Savannah, Georgia.
But it appears that new appointments have largely replaced workers laid off or resigning. About 150% of employees leave Amazon each year, twice the number of people working in retail and logistics as a whole.
Amazon has worse annoyance rates in Phoenix and California. It also has to compete with supermarkets like Walmart and Target, which now offer competitive wages to people with warehouse experience.