Amazon is closing two facilities, scrapping plans for 42 new buildings: report
- Amazon is closing two facilities in Baltimore and offering jobs elsewhere to more than 300 workers.
- Amazon has to limit the growth of its vast delivery network.
- A consulting firm told Bloomberg that the e-commerce giant has canceled plans to set up 42 new US facilities.
Amazon is starting to tighten its belt.
The e-commerce giant announced Wednesday that it will close two delivery stations in Baltimore that employ a total of more than 300 people, as first reported by local news outlet WMAR-2.
An Amazon spokesperson told WMAR-2 that the company will offer employees at stations the opportunity to relocate to other delivery stations in the area. The spokesman did not specify how many other stations, but said there were “several”.
The move appears to be the latest step in reconnecting with Amazon to expand its extensive delivery network.
MWPVL International Inc, a consultancy that tracks Amazon real estate purchases, told Bloomberg that Amazon has canceled plans to open 42 properties in the United States and postponed plans to open another 21.
The company has already lobbied to open a 700,000-square-foot facility in Nebraska, which was almost entirely constructed, delaying its opening until 2024.
CFO Brian Olsavsky told reporters in April that Amazon’s real estate empire has exploded during the pandemic due to increased demand that has now left the company with a surplus of space.
Olsavsky said Amazon doubled the size of its operations and workforce from mid-2021 to April 2022.
Amazon has also reduced hiring in its retail division this year. Insider previously reported that the department has been hit hard by rising inflation.
However, Amazon isn’t holding back every part of its business. Insider’s Eugene Kim reported Friday that the company has invited sellers to a new beta program designed to stock products over longer periods of time. While Amazon has historically focused on quick inventory, this new program indicates that it is looking to capture a larger share of the warehouse market.
Amazon did not immediately respond when I reached out to Insider for comment for this article.