Leaked Amazon Memo Warns the Company is Running Out of People To Hire in Its Warehouses

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. If that happens, the online retailer's service quality and growth plans could be at risk, and its e-commerce dominance along with it. From a report: 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 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.

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. 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.

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