(Bloomberg) — Amazon.com Inc., determined to reduce the size of its sprawling delivery operation amid slowing sales growth, has abandoned dozens of existing and planned facilities around the US, according to a closely watched consulting firm.
MWPVL International Inc., which tracks Amazon’s real-estate footprint, estimates the company has either shuttered or killed plans to open 42 facilities totaling almost 25 million square feet of usable space. The company has delayed opening an additional 21 locations, totaling nearly 28 million square feet, according to MWPVL. The e-commerce giant also has canceled a handful of European projects, mostly in Spain, the firm said.
Just this week Amazon warned officials in Maryland that it plans to close two delivery stations next month in Hanover and Essex, near Baltimore, that employ more than 300 people. The moves are a striking contrast with previous years, when the world’s largest e-commerce company typically entered the fall rushing to open new facilities and hire thousands of workers to prepare for the holiday shopping season. Amazon continues to open facilities where it requires more space to meet customer demand.
“There remains some serious cutting to do before year-end — in North America and the rest of the world,” said Marc Wulfraat, MWPVL’s founder and president. “Having said this, they continue to go live with new facilities this year at an astonishing pace.”
Maria Boschetti, an Amazon spokesperson, said it’s common for the company to explore multiple locations at once and make adjustments “based upon needs across the network.”
“We weigh a variety of factors when deciding where to develop future sites to best serve customers,” she said in an emailed statement. “We have dozens of fulfillment centers, sortation centers and delivery stations under construction and evolving around the world.”