Amazon is reportedly scrapping plans to build dozens of warehouse facilities across the country amid slowing sales growth.
Consulting firm MWPVL says the online retail giant has closed or abandoned plans to open 42 facilities across the country, totaling about 25 million square feet of usable space, Bloomberg reports. reported.
Amazon has also postponed the opening of 21 other locations and canceled several European projects, mainly in Spain, according to the company.
“Amazon is a dynamic business and we are always looking for new locations,” Amazon spokeswoman Maria Boschetti told Fox News Digital. “We consider a variety of factors when deciding where to develop future sites to best serve our customers. Dozens of fulfillment centers under construction and evolving worldwide, sorting We have centers, delivery stations, we often explore and coordinate multiple locations at the same time, timetables based on the needs of the entire network.”
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The report comes after the company announced it would close two delivery stations in Maryland that employ more than 300 people.
Amazon posted its slowest growth rate in more than 20 years in July, but ultimately performed better than expected, with shares up 12%, The New York Times reported.
“Despite continued inflationary pressures on fuel, energy and shipping costs, Amazon CEO Andy Jassy said in a statement that the more controllable costs we mentioned last quarter, particularly fulfillment We are making progress by improving the productivity of our mental network,” said Time.
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Amazon announced earlier this year that it would begin subleasing warehouse space as the number of online purchases declined.
Public Relations Alisa Carroll It said the subleasing would allow the company to “relieve financial obligations associated with existing buildings” that no longer meet its needs.
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according to wall street journalAmazon plans to sublease at least 10 million square feet of warehouse capacity and is exploring options to terminate or renegotiate more leases.
Additional spaces include facilities in New York, New Jersey, California and Georgia, Bloomberg News reported.
Fox News’ Landon Mion contributed to this report