According to MWPVL International, Amazon has decided to reduce the size of its sprawling delivery operation and jettison dozens of existing and future facilities in the U.S. amid weak sales.
This follows the company’s decision to either cancel or postpone plans to open 42 facilities covering 25 million square feet, as well as some European projects as part of plans to shift to modern infrastructure.
Amazon had previously notified Maryland authorities that it plans to close two delivery stations in Hanover and Essex next month, in stark contrast to earlier years when Amazon began building new infrastructure and hiring workers in anticipation of the holiday shopping season in the fall.
Although the company will continue to open facilities in areas where more space is needed to meet customer demand, Marc Wulfraat, founder and president of MWPVL, says there is still significant trimming to be done.
Maria Boschetti, a spokeswoman for Amazon, explains that the company often explores multiple locations simultaneously and makes changes when necessary. The company takes into account a wide range of variables when selecting where to set up new locations for optimal customer service, and building and expanding dozens of fulfillment centers, sorting centers, and delivery stations around the world.
The sources for this piece include an article in Bloomberg.