Amazon to close three UK warehouses and open two new mega DCs

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Amazon has announced it is closing three warehouses in the UK but, in the same breath, has said it will open two new mega distribution centres.

The warehouses set for closure include its 450,000ft² facility on Boundary Way in Hemel Hempstead, its 297,231ft² site at Faulds Park in Gourock, Scotland and a 415,000 ft² building in Doncaster. A total of 1,200 jobs will be affected.

The closures are part of Amazon’s restructuring following its overextension during the pandemic especially in the US. Some 18,000 jobs worldwide are expected to be cut.

The e-commerce retailer and 3PL, however, has said it will be opening two new mega fulfilment centres in the UK – which are thought to be a 2.325 million ft² facility in Peddimore as well as a 2.01 million ft² multi-storey warehouse in Stockton-on-Tees which Logistics Manager reported was confirmed in January 2022.

The new mega sheds will create an estimated 2,500 jobs.

An Amazon spokesman 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.”

Amazon signed a lease extension for its warehouse in Gourock in 2019 after a row with its then landlord M7, which saw the retail giant threatened with eviction – as reported in Logistics Manager. The property is now owned by US investor Ardent, which acquired it as part of a £55 million portfolio deal in 2021.

Amazon has three warehouses in Doncaster including the 415,000ft² site on Balby Carr Bank which it opened in 2010.

Amazon secured the Hemel Hempstead unit in 2012. At the time, then Prime Minister David Cameron said: “This is great news, not only for those individuals who will find work, but for the UK economy. This shows that the UK has the infrastructure and talent to continue to attract major investments from leading companies such as Amazon.”

All workers at the sites will be offered roles at other Amazon locations.

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