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Amazon has reportedly scrapped plans to build dozens of warehouse facilities in the US amid slowing sales growth.
The online retail giant is either closing or abandoning plans to open 42 properties across the country with about 25 million square feet of usable space, consulting firm MWPVL says. Bloomberg reported on this.
Amazon has also delayed the opening of 21 other locations and canceled several European projects, mainly in Spain, the firm said.
“Amazon is a dynamic business and we’re always exploring new areas,” Amazon spokeswoman Maria Boschetti told Fox News Digital. “We consider a variety of factors when deciding where to develop future sites to best serve our customers. We have dozens of fulfillment centers, sorting centers and delivery locations under construction and development around the world. It is common for us to explore and coordinate multiple locations simultaneously. is case. schedules based on needs within the network.”
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Amazon warehouse with packages and company logo (Getty Images/Getty Images)
The report follows the company’s announcement closure of two delivery points in Maryland, employing more than 300 people.
Amazon posted its slowest growth in more than 20 years in July, but ultimately delivered better-than-expected results, sending shares up 12%, the New York Times reported.
“Despite continued inflationary pressures in fuel, energy and transportation costs, we are making progress on the more manageable costs we referenced last quarter, particularly as we improve the productivity of our fulfillment network,” said Amazon CEO Andy Jassy. statement at the time.
Amazon will launch a vendor storage service called Amazon Warehousing and Distribution (AWD) to ease supply chain problems. (REUTERS/Gonzalo Fuentes/Reuters Images)
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Amazon announced earlier this year Will start subleasing some warehouse space as online shopping numbers slow.
Press Secretary Alice Carroll so-called subleasing allows a company to “relieve financial obligations related to an existing building” that no longer meets its needs.
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A truck arrives at an Amazon warehouse facility in Staten Island, New York, April 1, 2022. Amazon is banning off-duty warehouse workers from entering the company’s facilities, which organizers say could hinder unionized drivers. (AP Photo/Eduardo Munoz Alvarez, File/Associated Press)
according to The Wall Street JournalAmazon plans to sublease at least 10 million square feet of warehouse space and is considering ending or renegotiating more leases.
Additional locations include facilities in New York, New Jersey, California and Georgia, Bloomberg News reports.
Fox News’ Landon Mion contributed to this report
