Retail behemoth Amazon has delivered an unwelcome announcement, revealing it is considering the closure of its long-standing fulfilment centre in Milton Keynes. The potential move puts hundreds of jobs at risk at a site steeped in the company's UK history.
Historic Site Faces the Axe
The Milton Keynes centre holds a special place in Amazon's story, being the very first such facility the company opened in the United Kingdom back in 1998. Now, nearly three decades later, the US giant is 'mulling over' shutting it down. A formal consultation on the proposal has been launched, marking a significant shift in the company's operational footprint.
An Amazon spokesperson stated the company is continually evaluating its network to align with business needs and to enhance the experience for both staff and customers. The proposal forms part of this ongoing review.
Transfer Options and New Investment
Amazon has moved to reassure the 590 employees affected by the news. The company confirmed that all staff will be offered the opportunity to transfer to alternative locations. The primary destination is Amazon's brand-new, £500 million fulfilment centre in Northampton, which is scheduled to open in May.
This state-of-the-art facility in Northampton is a much larger operation. It is expected to employ 1,400 people initially, with numbers rising to 2,000 in time. Workers from Milton Keynes can also request transfers to other existing Amazon sites across the country. The company emphasised that supporting its people through this process is its 'top priority'.
Broader Context and AI-Driven Efficiency
The potential closure comes amidst a wider corporate focus on efficiency and leanness. Beth Galetti, Amazon's Senior Vice President of People Experience and Technology, communicated to employees that the company needs to be organised with 'fewer layers and more ownership' to move quickly for customers.
She pointed to the transformative power of the current generation of artificial intelligence, describing it as the most significant technological shift since the internet. This drive for innovation and efficiency is prompting a reallocation of resources towards the company's biggest strategic bets.
It is important to note that a separate Amazon sortation centre, also based in Milton Keynes, is unaffected by this proposal and will continue to operate as normal. Amazon employs approximately 75,000 people in the UK and over 1.5 million globally.
