Amazon.com, Inc AMZN has abandoned many existing and planned facilities in the US due to slow sales growth.
Bloomberg The quoted consulting firm MWPVL International Inc. said Amazon will not open 42 facilities spread across 25 million square feet of floor space.
According to MWPVL, the company has also delayed the opening of an additional 21 locations totaling approximately 28 million square feet.
Amazon also plans to close delivery stations in Hanover and Essex near Baltimore, where it has nearly 300 employees.
The company has tried sublease agreement at least 10 million square meters of storage space.
“Some serious cuts still need to be made before the end of the year – in North America and the rest of the world. But aside from that, they’re coming online at an amazing rate this year with new facilities,” Bloomberg was quoted as saying Marc WolfraatFounder and President of MWPVL.
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Wulfraat also said most of the closures announced in 2022 are delivery stations and smaller buildings.
According to MWPVL, Amazon operates more than 1,200 large and small logistics facilities in the United States
However, Amazon spokesman Maria Boschetti told the outlet that the Maryland closures are part of an initiative to move work to more modern buildings.
“We regularly review how we can improve the experience for our employees, partners, drivers and customers, and that includes upgrading our facilities,” said Boschetti.
Amazon reduced its workforce by nearly 100,000 employees in the June quarter. A roughly 6% reduction was the company’s largest cut in a single quarter.
