To be sure, part of Amazon’s turnover issue relates to how some employees view working in a warehouse as a brief pit stop on the way to better things. But now, as the internal report Recode reviewed shows, some inside Amazon are realizing that strategy won’t work much longer, especially if leaders truly want to transform it into “Earth’s best employer,” as Bezos proclaimed in 2021. Amazon founder and former CEO Jeff Bezos saw his warehouse workforce as necessary but replaceable, and feared that workers who remained at the company too long would turn complacent or, worse, disgruntled, according to reporting by the New York Times. In the past, that churn wasn’t a problem for Amazon - it was even desirable at some points. Watchara Phomicinda/MediaNews Group/The Press-Enterprise via Getty Images Workers sort parcels in the outbound dock at the Amazon fulfillment center in Eastvale, California, in August 2021. Amazon’s internal report calculated the available pool of workers based on characteristics like income levels and a household’s proximity to current or planned Amazon facilities the pool does not include the entire US adult population.Īmazon spokesperson Rena Lunak didn’t refute the contents of the internal report Recode obtained but declined to comment on it. The report warned that Amazon’s labor crisis was especially imminent in a few locales, with internal models showing that the company was expected to exhaust its entire available labor pool in the Phoenix, Arizona, metro area by the end of 2021, and in the Inland Empire region of California, roughly 60 miles east of Los Angeles, by the end of 2022. “If we continue business as usual, Amazon will deplete the available labor supply in the US network by 2024,” the research, which hasn’t previously been reported, says.
Raising wages and increasing warehouse automation are two of the six “levers” Amazon could pull to delay this labor crisis by a few years, but only a series of sweeping changes to how the company does business and manages its employees will significantly alter the timeline, Amazon staff predicted. If that happens, the online retailer’s service quality and growth plans could be at risk, and its e-commerce dominance along with it.
Amazon is facing a looming crisis: It could run out of people to hire in its US warehouses by 2024, according to leaked Amazon internal research from mid-2021 that Recode reviewed.
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