100,000 fewer employees in 3 months. Amazon closes and abandons development plans for 42 warehouses in the United States!

Amazon direction panneau

As I have already told you, I think, contrary to the dominant analysis, Amazon has a faulty economic model and has a structural problem and an inadequacy with the evolution of the world.

The story of the deliveries is a pure delirium, as is the incessant ballet of vans and hordes of subcontractors as badly paid as they are mistreated.

This group is a waste of resources, a mine of pollution production, of CO², total ecological nonsense.

Socially, e-commerce at this level is ravaging 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 AWS subsidiary.

This is the first time that my analysis, which is not tender and unorthodox on this value, is not confirmed for the moment but somewhat reinforced by new facts and they are not at all neutral for the future. from Amazon.

You will have understood that I am not a buyer of Amazon shares.

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

Amazon.com Inc, determined to downsize its sprawling delivery operations amid slowing sales growth, has ditched dozens of existing or planned installations in the United States, according to a closely watched consulting firm. .

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

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. The moves are 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 serious cuts to be made before the end of the year — in North America and around the world,” said Marc Wulfraat, founder and president of MWPVL. “That said, they continue to bring new facilities into service this year at an astonishing rate.”

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

“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 evolving around the world. »

The closures in Maryland are part of an initiative to shift work to more modern buildings, Amazon says. “We regularly review how we can improve the experience for our employees, partners, drivers and customers, and that 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 of relocating to several different delivery stations nearby. »

Chief executive Andy Jassy has pledged to end some of the pandemic-era expansion that has left Amazon with too much warehouse space and too many employees. The company generally reduced the number of employees by leaving vacancies, slowing hiring, and tightening disciplinary or productivity standards. But warehouse closures are also part of the panoply, and workers are bracing for more. During the second quarter, Amazon’s workforce shrank by about 100,000 jobs to 1.52 million, the biggest quarterly contraction in the company’s history.

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

Source Bloomberg.com here

Leave a Reply

Your email address will not be published.