By Sam Boughedda
A report by Vox on Friday said a leaked memo from Amazon (NASDAQ:AMZN) reveals the company is running out of people to hire.
According to Vox, the leaked Amazon internal research from around June last year states the company was facing a potential labor crisis. During the pandemic, Amazon ramped up new hires to keep up with soaring demand.
However, the research states their labor crisis was imminent in areas such as Phoenix, Arizona, and the Inland Empire region of California. Phoenix was reportedly expected to exhaust its labor pool in the area by the end of 2021, with the same expected in the Inland Empire region by the end of 2022.
Amazon was said to have outlined six “levers” that could delay the crisis, which included raising wages and increasing warehouse automation.
Vox said the Amazon report states: “If we continue business as usual, Amazon will deplete the available labor supply in the US network by 2024.”
The company warned that if the labor crisis were to materialize, it would impact the online retailer's service quality and growth plans.