Amazon Shuts Historic Milton Keynes Warehouse as £500m Northampton Hub Opens

Amazon has announced plans to close its long-standing Milton Keynes fulfilment centre, marking the end of operations at the company’s first UK warehouse, which began operations in the late 1990s. The move will affect around 590 employees, all of whom will be offered opportunities to transfer to a brand-new £500 million fulfilment centre in Northampton or to other Amazon locations across the country.

The announcement comes as part of Amazon’s wider strategy to modernise its logistics network in the UK, focusing on larger, more technologically advanced facilities capable of handling growing demand and faster delivery expectations.

End of an Era for Amazon’s First UK Warehouse

The Milton Keynes fulfilment centre, commonly known as LTN1 and located at Marston Gate, has been a major employer in the region for more than two decades. Opening in 1998–1999, the site played a crucial role in Amazon’s early expansion in the UK, acting as a central hub for storing, packing, and shipping millions of items nationwide.

However, Amazon has confirmed that the building is now set to close by May, with operations being gradually transferred to Northampton, located approximately 18 miles away. Once the transition is complete, the Milton Keynes fulfilment centre will cease operations entirely.

Despite the closure, Amazon has emphasised that the decision is part of a planned network optimisation rather than a downsizing of its UK presence.

Employees Offered Transfers, Not Redundancies

Amazon stated that all 590 affected employees will be offered the opportunity to relocate to the new Northampton fulfilment centre or to other Amazon sites, depending on their role and personal circumstances.

A collective consultation process has already begun, allowing employees to provide feedback and discuss their options. According to the company, supporting staff through the transition is a priority.

An Amazon spokesperson said the company regularly reviews its operational network to ensure it aligns with business needs while improving the experience for both employees and customers.

New Northampton Fulfilment Centre: Larger, Smarter, and More Automated

The new Northampton fulfilment centre represents a significant upgrade in both scale and technology. The £500 million facility, scheduled to open in May, will initially employ around 1,400 people, with total employment expected to rise to 2,000 workers over time.

The site will feature Amazon’s latest robotics and automation systems, including thousands of robots designed to improve efficiency, speed, and workplace safety. The building is expected to be one of the most advanced fulfilment centres in the company’s UK network.

Amazon has confirmed that the Northampton site will be substantially larger than the Milton Keynes facility and will offer modern, spacious working conditions for staff.

Milton Keynes Sortation Centre Remains Unaffected

While the fulfilment centre at Marston Gate is set to close, Amazon has confirmed that its sortation centre at Magna Park in Milton Keynes will continue operating as normal.

The Magna Park site is a separate part of Amazon’s logistics infrastructure and plays a different role. It receives packed parcels from fulfilment centres across the UK and sorts them overnight into regional delivery routes. The parcels are then sent to local delivery stations for final distribution.

The sortation centre currently employs approximately 1,100 people, and Amazon has confirmed that these jobs are not impacted by the fulfilment centre closure.

Shorter Delivery Times and Drone Testing in the UK

Alongside changes to its warehouse network, Amazon is also expanding its delivery capabilities in the UK. The company has announced that it is preparing to test drone deliveries, aiming to deliver packages to customers in under two hours.

The drone delivery service, known as Prime Air, has already been in use in the United States since 2022. In the UK, Darlington has been selected as the first location to pilot the service, with test flights already underway at a local fulfilment centre.

Prime Air drones are designed to deliver packages weighing up to five pounds, including everyday items such as beauty products, office supplies, and technology accessories. Once the service officially launches, eligible Amazon Prime members in the area will be able to opt in.

Amazon Prime currently costs £8.99 per month, offering members access to fast delivery, exclusive deals, and additional services.

Part of a Broader £40 Billion UK Investment Plan

Amazon’s restructuring in Milton Keynes and expansion in Northampton form part of a much larger investment strategy. The company has announced plans to invest £40 billion in the UK over three years (2025–2027).

This investment includes the construction of four new fulfilment centres, additional delivery stations, and continued development of logistics infrastructure nationwide. The Northampton site is one of the flagship projects under this programme.

Amazon has stated that the investment is aimed at supporting long-term growth, creating jobs, and enhancing service speed and reliability for UK customers.

Community Impact and Local Response

The closure of the Milton Keynes fulfilment centre will undoubtedly have an emotional impact on the local community, given the site’s historic importance and long-standing role as a major employer. For many workers, however, the relatively short distance to Northampton means commuting or relocation may be feasible.

Local stakeholders are expected to closely monitor the consultation process to ensure employee concerns are addressed fairly. Meanwhile, the continued operation of the Magna Park sortation centre provides reassurance that Milton Keynes will remain a key part of Amazon’s UK logistics network.

Looking Ahead

Amazon’s decision highlights the rapid evolution of the e-commerce and logistics sector, where efficiency, automation, and proximity to transport links increasingly shape operational decisions.

While the closure of Amazon’s first UK fulfilment centre marks the end of an era, the company’s significant investment in Northampton and across the UK signals continued confidence in the British market. For employees, customers, and local economies, the coming months will be crucial as the transition unfolds.

As Amazon pushes forward with advanced fulfilment technology, faster deliveries, and drone testing, the company’s UK operations appear set to enter a new phase—one built around scale, speed, and innovation rather than legacy infrastructure.