Chancellor Philip Hammond called Amazon's announcement "a clear vote of confidence" in the UK workforce and economy
Amazon is to create 2,500 permanent jobs in the UK in 2018, taking the total UK workforce to 27,500 by the end of the year.
The retail giant is expanding its number of software developers, engineers and technicians across the country "with all levels of experience" from the highly-skilled to those seeking entry-level positions and on-the-job training.
Amazon said that growing investments in British research and development and increasing customer demand were factors behind the expansion.
The company is also expanding its AmazonFresh, Amazon Business, Amazon Fashion, Prime Now, Prime Video, Amazon Music, Amazon Echo products and services, as well as its AWS cloud computing operations which contribute the most to Amazon's revenue.
Amazon will recruit staff for its development centres in Cambridge, Edinburgh and London, as well as its customer service centre in Edinburgh.
It is also seeking staff for its various delivery stations across the country and for the retailer's 16 fulfilment centres one of which is just outside of Milton Keynes.
There is also demand for staff in its fashion photography studio at its head office in London.
According to Amazon, the company has invested over £9.3bn in its UK operations since 2010.
Chancellor Philip Hammond called Amazon's announcement "a clear vote of confidence" in the UK workforce and economy.
He said: "Supporting businesses to create the high-quality jobs of the future is a key part of our plan to create an economy that works for everyone."
Amazon UK Country Manager Doug Gurr said: "The UK is a fantastic place to do business so we are delighted to continue our investment in the British economy and provide quality, permanent roles for people the length and breadth of the country.
"Whether you are looking for an entry-level role or in highly-specialised fields such as speech science or machine learning, we are proud to be expanding our UK workforce so we can further improve our products and services like AmazonFresh, Prime Video and Amazon Alexa."
The company said more than 650 permanent roles will be created in the company's development centres and AWS, in addition to hundreds of new head office positions.
The 2,500 jobs are a slowdown from the 5,000 Amazon recruited in the UK last year.
Mr Gurr said: "That honestly is simply a reflection of where calendar years happen to fall."
He added: "Broadly speaking over the long period I'd say it's a continuing story of investing at the rate of which we've always wanted to invest."
