Amazon is reportedly facing a looming crisis: It could run out of people to hire in its US warehouses by 2024, warns a leaked internal research from mid-2021 as per a report in Recode. This may derail the online retailer‘s service quality, growth plans and its dominance in the e-commerce market, says the report quoting the memo.
Some few sweeping changes to how the company does business and manages its employees may help significantly alter this timeline, says the memo. “If we continue business as usual, Amazon will deplete the available labor supply in the US network by 2024,” says the research paper.
However, in a statement to Engadget, an Amazon spokesperson said that the leaked document isn’t an accurate assessment of its hiring situation. “There are many draft documents written on many subjects across the company that are used to test assumptions and look at different possible scenarios, but aren’t then escalated or used to make decisions. This was one of them. It doesn’t represent the actual situation, and we are continuing to hire well in Phoenix, the Inland Empire, and across the country,” said Rena Lunak, Amazon’s director of global operations and field communications.
Incidentally, Amazon has invested heavily into automation by acquiring Kiva Systems in 2012. Amazon spent $775 million to buy Kiva Systems. The acquisition gave Amazon access to mobile robots that it now employs in its warehouses in the US.