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Amazon Abandons Dozens Of Warehouses Before They Even Open
Amazon has either closed or cancelled development of over 40 warehouses, representing almost 25 million square feet of real estate, according to Bloomberg.
Amazon’s CEO Andy Jassy has developed a strategy to cut an apparent surplus of warehouses and employees from a spending spree during the pandemic, Bloomberg reported, citing data from supply chain consulting firm MWPVL, which closely tracks Amazon’s activities. After a rapid expansion during the pandemic where, for a time, Amazon built a new warehouse almost daily, Amazon has since cancelled, closed or delayed 60 warehouses, and cut 100,000 jobs, Bloomberg reported.
“There remains some serious cutting to do before year-end — in North America and the rest of the world,” said Marc Wulfraat, founder and president of MWPVL, in a statement to Bloomberg. “Having said this, they continue to go live with new facilities this year at an astonishing pace.”
Amazon is joined by other struggling retailers who have been forced to cut earning estimates as inflation remains near record highs. Both consumer spending and the U.S. gross domestic product fell slightly in the second quarter, according to the Bureau of Economic Analysis.
Amazon announced this week it intends to close two delivery stations near Baltimore that employ more than 300 people, but stressed that the employees would be able to transfer to other facilities, according to Bloomberg. Typically, Amazon would be either opening new facilities or hiring workers to prepare for the holiday shopping season.
An Amazon spokesperson told Bloomberg it wasn’t unusual for the company to explore multiple locations and change their plans “based on needs across the network.” The spokesperson also told Bloomberg that the Baltimore-area facilities were closing as part of modernization efforts.
https://dailycaller.com/2022/09/02/amazon-abandons-warehouses-pandemic-building/