Amazon Steps Up European Expansion Plans

Amazon is making efforts to rapidly expand in the European market amidst stricter scrutiny of taxation, employment and privacy records.

Amazon has stepped up its investment plans across the European region in 2016, hiring thousands of more workers as it is seeking to grow amidst very strict scrutiny of its privacy, employment, and taxation records. The online trading giant, who seeks to establish its grocery delivery, digital media, cloud computation and device businesses, would publish information regarding its European operations.

The Seattle based company will echo other American technology companies in using financial arguments for showing its significance to the region as they are seeking to deal with the European backlash against giants based in the Silicon Valley.

Previous year, regulatory issues have challenged American technology groups – from Apple and Facebook to Amazon and Google – in privacy, taxation and competition in Europe. The online retailer told it hired a record making 10,000 workers across Europe in the last year, which helped it to take its workforce over 41,000. It further pledged to hire thousands of workers during 2016.

Most of the job opportunities are provided by its fulfillment centers – the huge warehouses that supply electrical appliances, toys and books – which have been criticized over pay and conditions. In the United Kingdom, the company has planned to hire 2500 more workers in 2016, in many functions across its new headquarters in London, 10 warehouses and 3 research and development centers. The number of its British staff would reach 14,500.

The planned investment has followed a record making Christmas trading period in the region for the American company, whose performance contrasted with conventional retailers. Amazon said it would extend its European warehouse network, establish infrastructure and increase R&D to help its cloud computation business. It would probably expand its pantry, grocery and one-hour delivery service as well.

Europe has turned into a significant innovation market for Amazon, which is running 10 research and development centers. In the United Kingdom, its research and development laboratories are currently working on delivery system employing drones, Prime Air and personal assistant known as Alexa – a cloud based app like Apple Siri.

In the past five years, Amazon had cumulatively invested €15 billion in Europe, and €4.6 billion in the United Kingdom, based on operating and capital expenditure in that period. Whereas political leaders will welcome the new job opportunities, while concerns regarding the treatment of employees by the organization have remains.

Amazon said it is already complying with the proposals for offering a national living wage of £7.20 to its workers in Britain.