Amazon cancels plans to build dozens of new warehouses and lays off hundreds as sales growth slows
Amazon also delayed the opening of 21 other locations and canceled several European projects, most of them in Spain.
“Amazon is a dynamic business, and we’re constantly exploring new locations,” Amazon spokeswoman Maria Boschetti said. “We weigh a variety of factors when deciding where to develop future sites to best serve our customers. We have dozens of fulfillment centers, sorting centers and distribution depots under construction and development around the world. We typically have both Explore multiple locations and adjust schedules based on needs across the network.”
The report comes after the company announced the closure of two delivery stations in Maryland that employ more than 300 people.
Amazon reportedly posted its slowest growth rate in more than 20 years in July but ended up reporting better-than-expected results, sending the company’s stock up 12%.
Amazon CEO Andy Jassy said in a statement at the time: “Despite continued inflationary pressures on fuel, energy and transportation costs, we made progress on the more manageable costs mentioned last quarter. , especially increasing the productivity of our fulfillment network.”.
Earlier this year, Amazon announced it would start subletting some warehouse space as online shopping has been slowing.
Spokesperson Alisa Carroll said the sublease allowed the company to “relieve the financial obligations associated with the existing building” and no longer meet its needs.
Amazon reportedly plans to sublease at least 10 million square feet of warehouse capacity and is considering options for terminating or renegotiating more leases.