Amazon has begun to tighten its belt.
According to local news channel WMAR-2, the e-commerce giant said Wednesday that it was closing two delivery facilities in Baltimore that employ a total of over 300 employees.
According to an Amazon spokeswoman, the business would provide employees at the stations the opportunity to relocate to other delivery stations in the vicinity. The representative would not say how many other stations there were, only that there were “a number.”
The move looks to be the latest in Amazon’s strategy of slowing the expansion of its huge delivery network.
According to MWPVL International Inc, a consulting firm that tracks Amazon’s real-estate purchases, Amazon has cancelled plans to establish 42 facilities in the United States and postponed plans to open another 21.
The business has already put a halt to the construction of a 700,000-square-foot complex in Nebraska, postponing its opening until 2024.
According to Chief Financial Officer Brian Olsavsky, Amazon’s real estate empire grew during the epidemic due to a surge in demand, leaving the business with an excess of space.
According to Olsavsky, Amazon more than doubled the size of its operations and employees between mid-2021 and April 2022.
This year, Amazon also reduced hiring in its retail segment. According to prior reports, the division has been severely impacted by surging inflation.
However, Amazon is not controlling every aspect of its operation. According to Insider’s Eugene Kim, the business has been inviting vendors to a new trial programme aimed to preserve merchandise for longer periods of time.
Whereas Amazon has traditionally focused on quick turnaround stock, this new programme indicates that the company is looking to capture a larger share of the warehouse market.
When Insider approached Amazon for comment on this piece, the company did not answer immediately.