Amazon to sublet UK warehouses as growth slows

Amazon is reportedly planning to sublet its empty warehouses across the UK, as it has continued to halt growth plans after its full-year profits halved to $12.2bn (£9.9bn) in FY22.

According to the Telegraph, Amazon has started subletting unused warehouse space across the country, despite estimations it opened hundreds of warehouses globally during the pandemic amid an online shopping boom.

The Telegraph noted that Amazon is not expected to sublet warehouses it is currently using, but instead those which it has not yet moved into. 

Its facility in Bracknell, which it has been fitting out, is amongst those it is reportedly looking to offload, the Telegraph added, with LinkedIn posts from contractors suggesting the site was being fitted out. 

The news follows Amazon’s announcement that it will axe over 18,000 roles across the group in a bid to cut costs following a business review that was launched last year. 

In a note to staff published last month, CEO Andy Jassy said the reductions will include those that were first announced last November, and that while several teams are impacted, the majority of job losses will be in Amazon Stores and People, Experience, and Technology (PXT) organisations.

He told staff that this year’s review “has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years”. 

Last November, Jassy announced the group would be axing a number of positions across Amazon’s Devices and Books businesses, whilst confirming there would be a voluntary reduction offer for some employees in the PXT organisation. 

At the time, Jassy said team leaders across the group were assessing workforce levels and investments that needed to be made for the “long-term health” of the business, warning that further cuts to its workforce should be expected in 2023.

Amazon has been contacted for further comment.