Amazon is getting ready to make adjustments. According to local news source WMAR-2, the e-commerce giant revealed on Wednesday that it was closing two delivery facilities in Baltimore that collectively employ more than 300 employees.
Amazon Closing 2 Facilities
A representative for Amazon told WMAR-2 that the corporation will give station employees the option of switching to other delivery locations nearby. There are “many” other stations, the representative stated, without specifying how many. The action appears to be the company’s most recent effort to slow the growth of its extensive delivery network.
According to MWPVL International Inc, a consulting company that tracks Amazon’s real estate purchases, they have postponed plans to establish 21 more facilities in the US while also canceling plans to open 42 more.
A 700,000-square-foot building in Nebraska that is almost finished being built was already put on hold by the corporation, delaying its opening until 2024.
Amazon and Brian Olsavsky
According to Chief Financial Officer Brian Olsavsky, the corporation currently has a surplus of space after the pandemic caused its real estate empire to inflate due to an increase in demand.
From mid-2021 to April 2022, according to Olsavsky, the company’s activities and employees more than doubled. Additionally, Amazon reduced employment this year in its retail sector. According to the sources, the division has been severely impacted by rising inflation.
However, Amazon is not limiting every aspect of its operations. The corporation has reportedly been inviting merchants to a new trial program that will preserve merchandise for longer periods, according to the sources. Also, they have typically prioritized quick turnaround stock, but this latest initiative suggests it is aiming to take a bigger chunk of the warehouse business.
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