Due to a slowdown in U.S. economic growth, Amazon is closing down or scrapping plans to open 42 warehouses, Bloomberg reports. Additionally, Amazon is delaying opening 21 warehouses.
In total, this impacts 53 million square feet—and is in sharp contrast to the breakneck speed at which Amazon opened warehouses and hired thousands during the pandemic when shuttered American shoppers turned en masse to the Internet.
On top of this, Amazon is looking to sublet 10 million square feet. To put this in perspective, the grand total of the space Amazon is contracting is 63 million square feet, or the size of roughly 1,300 football fields.
One of the sites impacted is a Maryland facility, where 300 workers will lose their jobs.
For a while, Amazon was opening a new warehouse in the U.S. every 24 hours, with CEO Andy Jassy saying in June that the global online sales behemoth decided in early 2021 to err on the side of having too many warehouses as opposed to too few. In so doing, Amazon’s buildout exceeded that of Walmart Inc., United Parcel Service and FedEx.
During previous slowdowns, Amazon would simply not fill open positions.
Maria Boschetti, an Amazon spokesperson, attributed the closures to a move by the company to work out of more modern facilities. “We regularly look at how we can improve the experience for our employees, partners, drivers and customers, and that includes upgrading our facilities,” Boschetti told Bloomberg in an email statement.
In the second quarter, Amazon’s 1.52 million worldwide jobs shrank by roughly 100,000 positions, the biggest quarter-to-quarter cut back in the company’s history. The company also posted its slowest growth in more than 20 years in July.
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