Amazon announced the closing of a 130-person distribution center in Seattle. The online retail service will be moving the workload formerly covered at that facility to Phoenix. Analysts attribute the move largely to the difference in minimum wages of the two cities. In Seattle, Amazon must pay at least $15.45 an hour, whereas they can pay $11.25 an hour in Phoenix. Corporate representatives explained the move was routine, as the company is always seizing opportunities to realize significant savings in time and money to keep costs down for customers. The decision had been announced, and employees warned, months in advance. Contrary to prevailing opinion, based partially on opposition expressed by Amazon and others, the decision was made long before Seattle City Council passed the head tax. The head tax imposes a per-employee tax on large employers to raise money for affordable housing and homelessness initiatives. The head tax is expected to cost Amazon $275 per employee per year.