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Never Mind Brexit, Amazon.com, Inc. (AMZN) Goes on Hiring Spree

Amazon.com Inc (NASDAQ:AMZN)

Amazon.com, Inc. announced on Friday that it will create 500 more jobs in the United Kingdom. The company is set open a new distribution center in northern England next year, where these permanent jobs will be created. Last month, Amazon’s UK Manager Doug Gurr said Britain’s decision to leave the European Union had not affected the company’s investment plans for the country, Reuters reported.

Amazon.com Inc (NASDAQ:AMZN)

New UK Distribution Center

The newly-created positions will include managers, engineers, HR and IT roles for the warehouse, which will be the company’s third center in Doncaster. The distribution center is scheduled to open in 2017. However, the company did not disclose the exact date of the opening.

These 500 jobs are in addition to 3,500 permanent jobs that the e-commerce behemoth plans to create across the UK during this year. The new jobs will bring the total number of Amazon’s full time permanent UK employees to more than 15,500 by the end of this year.

Sky News reported that Amazon will offer a “comprehensive benefits package” to the new employees. The new package includes private medical insurance, a pension plan and subsidized meals. The e-commerce will pay £7.35 an hour or more, which will increase over the first two years of their employment.

Amazon UK Hiring Spree Continues

Amazon.com, Inc. wasn’t concerned about Britain’s vote to leave the European Union. The company is expanding into the UK despite Brexit.

The e-commerce giant previously announced 1,000 new permanent jobs, spreading across London, Cambridge, Edinburgh, Manchester and Leicestershire, as well as 2,500 extra jobs across in the country.

Earlier this year, Amazon announced plans to open two fulfillment centers and create 2,500 permanent jobs in the UK this year. The firm is opening one fulfillment center in Coalville, Leicestershire, where 500 new permanent jobs will be created over three years. Another fulfillment center will be opened in Manchester, where the company plans to create 1,000 new permanent jobs in next three years.

Earlier, CNBC reported that Brexit would impact the company’s expansion plans in the UK. For the e-commerce giant, hiring in the country could become difficult as the firm relies on low wage immigrant workers to staff its fulfillment centers. Those low-paid workers may find it harder to live and work in the UK.

Global Equities Research said that Amazon could face problems in the UK because “Brexit will to lead to higher labor costs, an over-supply in certain skills and a shortage of others.” This will reduce or altogether eliminate profit margins of many businesses — thereby reducing the overall value of the businesses in Britain, Trip Chowdhry, analyst at Global Equities Research, told CNBC.

Over the past six years, the online retailer has invested over £4.6 billion or $6.30 billion in the UK economy. In March, the company announced that it will staff throughout the country — at its head office, research and development centers, customer service centers, and new Amazon Web Services (AWS) UK data centers, currently under construction.

In 2015, Amazon created 10,000 new jobs across Europe, currently employing over 40,000 people across Europe. The online retailer is planning to create several thousand more new jobs in Europe this year. The 10,000 new permanent roles added last represents a 50% increase compared to 2014.

Recently, Amazon.com, Inc. started a food delivery service in London. The service, called AmazonFresh, is part of the company’s efforts to expand into Britain’s online market, which is anticipated to nearly double to $25 billion in the five years to 2020.

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