Amazon is closing its sortation center in Minnesota by the end of March which could lead to 680 job cuts.
The company will offer internal transfer options to those impacted by the closure in Shakopee, but those who don’t accept will be let go.
The lease on the center is about to expire and Amazon says it is working to relocate workers.
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A company spokesperson said: “All employees at our facility in Shakopee are being offered opportunities to transfer to other facilities in and around the Twin Cities, or support if they choose not to stay with Amazon.”
Amazon has two warehouses in Shakopee, one is a large fulfillment center, which is not likely to be impacted by the upcoming shutdown.
The other sortation center is much smaller, where items are sorted by ZIP code for faster deliveries.
Due to a slowdown in sales after the Covid-19 pandemic, Amazon has been closing some smaller warehouses and shelved plans for others.
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The pandemic saw the e-commerce giant rapidly expanding its warehouse empire to keep up with the demands of people ordering during lockdowns.
Amazon HR VP Sandy Gordon said the Shakopee facility will close by March 31, the same date when layoffs are slated to take effect.
The 150,000-square-foot sorting center opened in October 2015 and was one of the first Amazon facilities in Minnesota.
It was quickly followed by Shakopee’s almost one million-square-foot fulfillment center, where items are selected and packaged into boxes.
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Some workers at the larger fulfillment center in Shakopee have recently begun unionizing efforts.
Over the years, there have been protests and strike actions at that site due to poor worker treatment.
Amazon is one of several Big Tech firms that have announced massive job cuts in recent months after a hiring spree during the pandemic.
CEO Andy Jassy said earlier this month that the company’s layoffs will hit around 18,000 employees.
Source: Star Tribune
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