E-commerce giant Amazon (AMZN) has abandoned plans to open dozens of new warehouses
across the U.S.
The Seattle-based company is now looking to reduce the size of its delivery operations amid
slowing sales growth.
Amazon has either closed or dropped plans to open 42 new facilities totaling almost 25 million
square feet of usable space. The company has also delayed opening an additional 21 locations,
totaling nearly 28 million square feet.
The e-commerce giant also has canceled a handful of new projects in Europe, mostly in Spain.
The cancelled plans are a reversal from previous years when Amazon entered the autumn
racing to open new facilities and hire thousands of workers to prepare for the busy holiday
shopping season.
Amazon Chief Executive Officer (CEO) Andy Jassy has promised to unwind part of the
company’s pandemic-era expansion that saddled it with a surplus of warehouse space and too
many employees.
During this year’s second quarter, Amazon’s workforce shrank by 100,000 positions to 1.52
million people globally, the biggest quarter-over-quarter contraction in the company’s history.
The company has also been looking to sub-lease 10 million square feet of warehouse space.
Amazon’s stock is down 25% this year at $$127.51 U.S. per share. The stock split on a 20-for-1
basis in June of this year.
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