100,000 fewer employees in 3 months. Amazon closes and abandons plans to develop 42 warehouses in the United States! – Insolentiae

As I’ve already told you, I believe, contrary to the prevailing analysis, that Amazon has a faulty economic model and has a structural problem and is unsuitable for the development of the world.

The delivery story is pure delirium, like the constant ballet of carriages and hordes of subcontractors who are as poorly paid as they are mistreated.

This group is a waste of resources, a mine to produce pollution, for carbon dioxide, a total ecological nonsense.

In social terms, e-commerce at this level is destroying small businesses and the commercial fabric of our cities, including large ones.

But the worst thing is that Amazon loses money every year and every delivery and only makes money thanks to its subsidiary AWS.

This is the first time that my analysis, which is not too fluffy and unorthodox about this value, is not affirmed at the present time but is somewhat reinforced by new facts and is not at all impartial for the future. from amazon.

You will understand that I am not a buyer of Amazon stock.

Amazon closes and abandons plans for dozens of warehouses in the United States

Determined to scale back its sprawling deliveries amid slowing sales growth, Amazon.com has decided to abandon dozens of existing or planned facilities in the United States, according to a closely watched consultancy.

MWPVL International Inc, which tracks Amazon’s real estate footprint, estimates that the company has either closed or canceled plans to open 42 properties totaling about 25 million square feet of usable space. The company has delayed the opening of 21 more locations, with a total area of ​​nearly 28 million square feet, according to MWPVL. The e-commerce giant has also canceled a few European projects, mostly in Spain, according to the company.

Just this week, Amazon warned authorities in Maryland that it plans to close two delivery stations next month in Hanover and Essex, near Baltimore, which employ more than 300 people. These moves represent a stark contrast to years past, when the world’s largest e-commerce company rushed into the fall to open new facilities and hire thousands of workers in preparation for the holiday shopping season. Amazon continues to open facilities when it needs more space to meet customer demand.

“There are still significant cuts to be made before the end of the year — in North America and around the world,” said Mark Wolfrat, founder and president of MWPVL. “However, they continue to bring new facilities into service this year at an astonishing rate.”

It’s common for the company to crawl multiple sites simultaneously and make adjustments “based on the needs of the entire network,” said Maria Boschetti, an Amazon spokeswoman.

“We weigh a variety of factors when deciding where to develop future sites to better serve customers,” she said in an emailed statement. “We have dozens of fulfillment centers, sorting centers and delivery stations under construction and development around the world.”

Amazon says the shutdowns in Maryland are part of an initiative to shift the business to more modern buildings. “We are regularly reviewing how we can improve the experience for our employees, partners, drivers and customers, and this includes upgrading our facilities,” Boschetti said. As part of this effort, we will be closing our delivery stations in Hanover and Essex and offering all employees the option to relocate to several different delivery stations nearby. »

CEO Andy Gacy has vowed to end some of the pandemic-era expansion that has left Amazon with plenty of warehouses and many employees. The company has generally reduced headcount by leaving vacancies, slowing hiring, and tightening disciplinary or productivity standards. But warehouse closures are also part of the overall package, and workers are preparing for more. During the second quarter, Amazon’s workforce shrank by nearly 100,000 jobs to 1.52 million, the largest quarterly contraction in the company’s history.

The Seattle company has also sought to lease at least 10 million square feet of warehouse space, Bloomberg reported in May. »

Source Bloomberg.com here