Leaked Report Says Amazon May Run Out Of People To Hire In US by 2024

Zinger Key Points
  • Report says Amazon would exhaust its labor supply in Phoenix, Arizona, by the end of 2021 and in California by 2022.
  • Amazon workers at a Staten Island warehouse voted in April in favor of forming a union.

According to a new report, a leaked Amazon.com, Inc AMZN internal memo from mid-2021 suggests that the company may face a resource crunch and may run out of people to hire at the company's U.S.-based warehouses by 2024.

The memo estimated that Amazon would exhaust its labor supply in Phoenix, Arizona, by the end of 2021 and in California by 2022.

As per the report, Amazon’s attrition rate is especially high in Phoenix and the Inland Empire. In addition, the company has challenges competing with Walmart Inc WMT and Target Corporation TGT in offering competitive wages to those with warehouse experience.

Also Read: Former Amazon Mexico CEO Accused Of Paying $9,000 To Have Ex-Wife Killed; Last Seen Entering The US

The report urged the company to increase the automation process in its warehouses to mitigate the resource issue and take steps to address the labor gap issue by raising wages to retain its existing workforce and attract new hires.

The research report said, “If we continue business as usual, Amazon will deplete the available labor supply in the US network by 2024.”

For the first time, Amazon workers at a Staten Island warehouse voted in April in favor of forming a union. Then in May, workers voted against unionizing a second warehouse in New York City.  

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