Amazon is reportedly scrapping plans to build dozens of warehouse facilities in the United States amid slowed sales growth.
Consulting firm MWPVL says the online retail giant is closing or abandoning plans to open 42 facilities nationwide, totaling nearly 25 million square feet of usable space, Bloomberg reported.
The company says Amazon has also delayed opening 21 other locations and canceled several European projects, mainly in Spain.
“Amazon is a dynamic company and we are constantly looking for new locations,” Amazon spokesperson Maria Boschetti told Fox News Digital. “We consider several factors when deciding where to develop future locations to best serve customers. We have dozens of fulfillment centers, sorting centers and delivery stations under construction and development around the world. explore multiple locations simultaneously and adjust schedules based on needs across the network.”
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The report comes after it announced that the company is closing two delivery stations in Maryland that will employ more than 300 people.
Amazon posted its slowest growth in more than 20 years in July, but ultimately delivered better-than-expected results, pushing its share 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, specifically improving the productivity of our fulfillment network,” said Andy Jassy, Amazon CEO. a statement on time.
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Amazon announced earlier this year that it would be subletting some warehouse space as the number of online stores has declined.
Spokeswoman Alisa Carroll this subletting allows the company to “relieve the financial obligations associated with an existing building” that no longer meets its needs.
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According to The Wall Street JournalAmazon plans to sublet at least 10 million square feet of warehouse capacity and is looking at options to terminate or renegotiate more of its leases.
The additional space includes facilities in New York, New Jersey, California and Georgia, Bloomberg News reported.
Landon Mion of Fox News contributed to this report
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