Amazon Shuts Down 2 California Facilities to Meet "Business Needs"

Amazon have opted not to renew their lease on a pair of California facilities, a decision that will impact the hundreds of workers employed across the 2 sites.

A spokesperson told SFGate that the decision was taken in order to meet the international multi-billion dollar technology company's "business needs".

Amazon Struggles

This move is the latest in a series of layoffs that Amazon have undertaken in 2024 so far in various divisions.

In the first 2 months of 2024, the company gave workers their marching orders in their healthcare and Amazon Prime divisions. Amazon-owned Twitch also lost hundreds of employees in this period.

Tech Industry Struggles

Amazon are not the only technology company facing difficulties retaining employees. There has been a spate of layoffs across the tech industry.

After a rocky 2023, since the beginning of 2024 there have been over 60000 layoffs in the industry, as tracked by TechCrunch.

AI-Driven Adaptation

Several reasons have been mooted for the large number of layoffs in the sector in recent years, and they often involve the development of new technologies.

Some jobs are being automated that were previously seen as being safe from automation, and businesses continue to be shaken up by the adoption or non-adoption of AI in their and their rivals' workflows.

Unfulfilled

One of the California facilities being shut down is a 'fulfillment center' in Sacramento, the Golden State's capital, which promised 1500 jobs back when it was opened in 2017 and was hailed as a high-tech facility.

The 'fulfillment' in the title refers to the fulfillment of orders. They are large warehouses that process and fulfil orders for Amazon and their clients.

Hundreds Affected

The decision to shutter the facilities will directly affect the 321 employees in total that work in them.

The warehouse in Sacramento, shutting down on October 30, had 159 employees while the other facility affected, in Irvine, with 162 employees, will shut down on November 7.

Tough Decision

To remain employed, the workers at the facility will have to relocate to another "nearby" Amazon facility, or face a permanent layoff.

Amazon have offered to transfer the employee to a new location but, failing that, their employment will be terminated.

Amazon Care

Amazon says that they are closing down the facilities because they are constantly trying to improve services for their employees, according to spokesperson Sam Stephenson.

"We're always evaluating our network to make sure it fits our business needs and to improve the experience for our employees, customers, and partners. As part of that effort, we've decided not to renew the lease at our facilities in Irvine and Sacramento."

Support Offered

Employees may want to keep in contact with their bosses, as Amazon have offered support for the affected workers, who they say they "appreciate".

"We appreciate our team's hard work and commitment, and we're supporting impacted employees to find new opportunities within Amazon, including at nearby fulfillment sites."

Series of Shutdowns

These 2 facilities are not the only California facilities that have been shut down by Amazon leadership in recent months.

Dogpatch, in San Francisco, saw the closure of a large Amazon facility just 2 years after the company had begun leasing the location.