Amazon Closing 2 Facilities & Scraps Plans For 42 Others
The current economic climate is affecting even the largest businesses out there as Amazon has announced this week, that it too is starting to tighten its belt.
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Amazon will be closing two of its facilities in Baltimore and is offering to relocate the affected 353 employees. Both facilities will be closed by the 25th of October 2022. An announcement from Amazon confirmed the news which was broken by WMAR-2.
“We regularly look at how we can improve the experience for our employees, partners, drivers, and customers, and that includes upgrading our facilities. As part of that effort, we’ll be closing our delivery stations in Hanover and Essex and offering all employees the opportunity to transfer to several different delivery stations close by. These facilities provide upgraded amenities including onsite parking and breakrooms with Canteen vending.” – Alisa Carroll, Spokesperson, Amazon
Amazon Slowing Down After Pandemic Growth
During the pandemic as many buyers were not allowed to go to stores, the boom of eCommerce was colossal and one of the major winners in the space was Amazon. This led the company to invest heavily in its logistics and order processing capabilities and the result was the eCommerce giant doubling its logistics network in just 2 years since 2019.
With that, the company MWPVL International, which tracks the eCommerce giant’s real-estate footprint, has estimated that the company has either paused or shut down plans to open 42 facilities totaling almost 25 million square feet of usable space. The company has delayed opening an additional 21 locations, totaling nearly 28 million square feet.
“There remains some serious cutting to do before year-end — in North America and the rest of the world,” said Marc Wulfraat, MWPVL’s founder and president.
“Having said this, they continue to go live with new facilities this year at an astonishing pace.”
It has also been reported that Amazon was also looking to sub-lease approximately 10 million square feet of warehouse space that has already been built but is not currently being utilized by Amazon themselves.
Getting spending and logistics under control is only one issue that Amazon is currently facing. The other big one is the nationwide unionization threat they are facing from countless locations of their warehouse workers and drivers.
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Dave is a Co-Founder of eSeller365. For over 10 years he has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant, he built an education platform called UnderstandingE that showed the world how to utilize Magento as the “Third Generation of Multi-Channel software”.
Dave has also created a YouTube channel dedicated to entrepreneurship and eCommerce as well as a podcast dedicated to mental health awareness. When Dave isn’t working his main interests include learning and playing Chess, researching the Crypto and NFT space, and trying to find the nearest beach.