Amazon may have a lot of warehouse space now, as the excitement that fueled the epidemic towards ecommerce has slowly cooled.
According to sources the retail giant is poised to reclaim 10 million square feet of space and could further vacate it by concluding leases with landlords. Bloomberg.
Anonymous sources said additional space issues are affecting warehouses in New York, New Jersey, Southern California and Atlanta.
How big is the problem?
Amazon’s extra space problem could be more than 10 million square feet, according to two sources, one source said.
Amazon did not comment on the exact size of the space, but Amazon spokeswoman Alyssa Carroll said Associated Press The move “relieves the financial obligations associated with the current building that can no longer meet its requirements”.
“Sublimation is the work that most established companies do to help maintain their real estate portfolio,” Carroll added.
There have been reports that Amazon is adjusting to a lower growth environment after the epidemic
The news comes after Amazon reported a net loss of $ 3.8 billion in the first quarter of the year, the first since 2015, compared to $ 8.1 billion in revenue in the same period of 2021.
However, sales rose 7% to $ 116.4 billion in the quarter, compared to 44% growth over the same period in 2021.
Amazon’s cloud hosting division Amazon Web Services (AWS) reported stellar performance despite recording 32% revenue growth in its first quarter.
“Today, as we no longer chase physical or personnel capacity, our teams are fully focused on improving productivity and cost capabilities across our entire network,” said Andy Jassie, CEO of Amazon’s most recent revenue report. “We know how to do it and have done it before.”
“This may take some time, especially when we are working through ongoing inflation and supply chain pressures, but we are seeing encouraging progress on many customer experience measures, including delivery speed performance, as we are now reaching levels we have not seen before in the early months of 2020.”