As predicted! Amazon is moving their “delivery support” unit out Seattle and into Phoenix where the cost for minimum wage would be significantly lower.
Amazon is closing a 130-person Seattle delivery support unit and moving all the jobs to Phoenix, where the minimum wage is significantly less, the Seattle Times reported.
The unit, which worked in the retailer’s Seattle central operation center, routing drivers who deliver groceries and other items. According to the report, employees were informed earlier this year that their jobs were moving to Phoenix by the end of June.
“They just made this blanket announcement that everybody was getting laid off, but that they were going to try to find [other] jobs for everybody,” an employee told the Seattle Times.
The moves comes weeks after Seattle’s City Council passed a head tax on large employers aimed at funding affordable housing and homelessness services -- a bill that Amazon and several other large employers in the area openly and strongly opposed.
“We are disappointed by today’s City Council decision to introduce a tax on jobs,” Amazon spokesman Drew Herdener said in a statement after the council approved the tax earlier this month.
The new tax will cost the company about $275 per employee, per year.