Amazon Inc. is just a couple of years from facing a problem that could hugely impact its business. According to an internal memo from 2021, which was recently obtained by Recode, Amazon’s researchers predict the company will run out of people to hire in their U.S. warehouses by 2024.
At several locations, the pool of workers was almost depleted around the time the memo was compiled. This included Phoenix’s metro area and California’s Inland Empire metropolitan area, where Amazon should have no people to hire since late 2021.
“If we continue business as usual, Amazon will deplete the available labor supply in the US network by 2024,” said the memo.
It is important to note that Amazon’s research didn’t take into consideration the entire adult population that is able to work. Instead, it was based on certain characteristics that included proximity to Amazon warehouses and income levels.
The memo identifies several steps that could help Amazon avoid a worst-case scenario by 2024. This includes “raising wages” and “increasing warehouse automation.” However, this would only work short term. If the company wants to set itself up for a prosperous future, it would need to engage in “a series of sweeping changes” regarding the way it does business and manages its employees.