Amazon.com, determined to scale back its commitment operations amid slowing sales growth, has abandoned dozens of existing and planned facilities across the US, according to a closely watched consulting firm. , co-ordinate to a closely watched consulting firm.
MWPVL International Inc., which tracks Amazon’s real manor footprint, estimates the visitor has closed or canceled plans to open up 42 facilities with a total usable area of well-nigh 25 1000000 square feet. The visitor delayed opening 21 more locations, totaling nearly 28 million foursquare feet, according to MWPVL. The company said the eastward-commerce behemothic has too canceled a number of projects in Europe, mainly in Spain.
But this week, Amazon warned officials in Maryland that it plans to close ii commitment stations next month in Hanover and Essex, near Baltimore, which employ more than 300 people. The motion stands in stark contrast to previous years, when the world’south largest e-commerce company typically rushes into the autumn to open new facilities and hire thousands of workers to gear up for the vacation shopping flavor. . Amazon continues to open up facilities that require more space to accommodate customer demand.
“There are still some serious cuts left before the cease of the twelvemonth – in Due north America and the residuum of the world,” said Marc Wulfraat, founder and president of MWPVL. “Having said this, they continue to come up online with new facilities this twelvemonth at an amazing footstep.”
Maria Boschetti, an Amazon spokeswoman, said the company often explores multiple locations at one time and makes adjustments “based on demand across the network”.
“We consider many factors when deciding where to develop future websites to best serve our customers,” she said in an emailed argument. “We accept dozens of fulfillment centers, sorting centers and commitment stations under construction and evolution around the world.”
Amazon said the Maryland closures were office of an initiative to shift work to more modernistic buildings. “We regularly review how nosotros tin can improve the experience for our employees, partners, drivers and customers, including upgrading our facilities,” said Boschetti. “Equally role of that try, nosotros will be closing our delivery stations in Hanover and Essex, and giving all employees the opportunity to motility to a number of different delivery stations nearby.”
CEO Andy Jassy has pledged to disengage part of the pandemic-era expansion that has left Amazon struggling with warehouse infinite and overcrowding. Often, the visitor has eliminated the ranks of hourly workers by leaving open positions open up, slowing hiring and tightening standards for discipline or productivity. But the warehouse closure is also part of the cause, and workers are bracing for more. In Q2, Amazon’southward workforce dropped most 100,000 jobs to 1.52 million, the largest quarterly decline in the visitor’due south history.
The Seattle company is also looking for a fashion sublet Bloomberg reported in May.
As domestic shoppers flocked to online during the pandemic, Amazon responded by doubling the size of its logistics network over a two-yr menstruum, a growth that speedily surpassed its rivals. and partners like Walmart Inc., United Parcel Service Inc. and FedEx For a while, Amazon opened a new warehouse somewhere in the Usa near every 24 hours. Jassy told Bloomberg in June that the company decided in early on 2021 to build towards the acme of its shopper demand forecast, due to having also much warehouse space instead of too trivial.
Wulfraat says almost of the closures announced this twelvemonth are delivery stations, smaller buildings that deliver prepackaged items to drivers. The facilities that have been canceled include several planned fulfillment centers, huge warehouses property millions of items. MWPVL estimates that Amazon operates more than 1,200 logistics facilities large and small beyond the United States.
The tightening of belts could further complicate Amazon’southward already strained relationship with organized labor. Earlier this year, an emerging labor marriage started by a laid-off Amazon worker won a historic victory at a company warehouse in Staten Island, New York. A federal labor official on Thursday waste product Amazon attempted to reverse the results. Terminal month, workers at an Amazon facility most Albany, New York, use for to agree a union election there.
The amount of redundancy Amazon needs to make is hard to judge, and some analysts believe the extra space will come in handy during the Christmas season.
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