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 opening 21 more 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 customers. We have dozens of fulfillment centers, sorting centers, and deliveries under construction and developing around the world. It’s difficult for us to explore multiple locations at once and adjust schedules. is common. based on needs within the network.”
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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.
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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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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
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