A general view of the Amazon's fulfilment centre in Peterborough, central England. AFP
A general view of the Amazon's fulfilment centre in Peterborough, central England. AFP
A general view of the Amazon's fulfilment centre in Peterborough, central England. AFP
A general view of the Amazon's fulfilment centre in Peterborough, central England. AFP

Amazon to create 10,000 new permanent jobs in UK this year


Alkesh Sharma
  • English
  • Arabic

Amazon is creating 10,000 new permanent jobs and 20,000 seasonal positions in the UK this year, the company said in a statement on Thursday.

The e-commerce giant has already hired 3,000 new staff at its fulfilment centres, sorting centres and delivery stations in the UK and will add 7,000 more by the end of the year across more than 50 sites, it said. This will take the company’s permanent workforce in the country to more than 40,000.

“Our people have played a critical role in serving customers in these unprecedented times and the new roles will help us continue to meet customer demand and support small and medium-sized businesses selling on Amazon,” said Stefano Perego, vice president of the company’s European customer fulfilment operations.

Amazon is also opening two new fulfilment centres in the North East and Midlands regions before the end of this year, the company said.

It has invested over £18 billion ($23.9bn / Dh87.7bn) in its UK operations since 2010 and said it has helped to digitally empower more than 373,000 small businesses and content creators.

“While this has been a challenging time for many businesses, it is hugely encouraging to see Amazon creating 10,000 jobs in the UK this year,” Alok Sharma, the UK’s secretary of state for business, energy and industrial strategy, said.

“This is not only great news for those looking for a new job, but also a clear vote of confidence in the UK economy … the government remains deeply committed to supporting retailers of all sizes and we continue to work closely with the industry,” he added.

Amazon will also create more than 20,000 seasonal positions across the UK ahead of the festive period at its different sites.

“We prepare year-round for the festive season …  we look forward to welcoming back seasonal workers who return year-after-year to work at Amazon and welcome new faces to the seasonal team,” Mr Perego said.

The company is offering a minimum wage of £10.50 per hour in the London area and £9.50 per hour in other parts of the UK for all full-time, part-time, temporary and seasonal roles.

It is hiring in various departments including engineering, finance, human resource, technology and health and safety.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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