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Amazon is facing a looming crisis: It could run out of people to hire in its US warehouses by 2024, according to leaked Amazon internal research from mid-2021 that Recode reviewed. If that happens, the online retailer's service quality and growth plans could be at risk, and its e-commerce dominance along with it. Workers sort parcels in the outbound dock at the Amazon fulfillment center in Eastvale, California, in August 2021. "We are hearing a lot of [Amazon] workers say, 'I can just go across the street to Target or Walmart,'" said Sheheryar Kaoosji, co-executive director of an Inland Empire nonprofit called the Warehouse Worker Resource Center. Kaoosji added that Walmart is offering some workers with past warehouse experience as much as $25 an hour. An Amazon executive told Reuters in late 2021 that the company was bumping the average starting wage for new hires in the US to more than $18 an hour, attributing the decision to intense competition among employers. He also said Amazon had increased hiring bonuses to as much as $3,000 in some geographies. David Paul Morris/Bloomberg via Getty Images "They were so concerned about attrition and losing people that they rolled back all the policies that us as managers had to enforce," Michael Garrigan, a former entry-level manager at Amazon warehouses in Phoenix from 2020 to early 2022, told Recode. "There was a joke among the ... managers that it didn't matter what [workers] got written up for because we knew HR was gonna exempt it. It was almost impossible to get fired as a worker." The leaked report viewed by Recode reads like an attempted wake-up call - along with potential solutions to avert the crisis - for some company leaders who long exhibited a nonchalant attitude toward employee attrition. "I find the whole situation crazy," said the 35-year-old Pagan, who was supporting his wife and daughter on his Amazon income. "They're gonna lose a good worker for nothing." Johannes Eisele/AFP via Getty Images faux saint laurent bag
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