The giant ‘everything’ company is actually closing down warehouse across the country….
That means people are losing their jobs….
(Amazon still uses UPS and the Postal Service also)
By early 2022, e-commerce activity began to slow, as inflation-weary consumers reduced their spending online and also returned to shopping in stores. Amazon found itself saddled with “too much space…versus our demand patterns,” CFO Brian Olsavsky told reporters in April.
The company is now rethinking its scale at every step of its fulfillment network, from the massive warehouses that pick, pack and ship orders, to the smaller, last-mile delivery stations that are the final stop before packages are dropped off at shoppers’ doorsteps.
Amazon relies on legions of contracted drivers to speed packages to customers doorsteps. The drivers are employed by third-party companies that are part of Amazon’s delivery service partner program, which launched in 2018. The program now counts3,500 companies who employ 275,000 drivers globally.
It’s unclear how many employees will be laid off as a result of the facility closures….
The cuts come as CEO Andy Jassy has pledged to return to a “healthy level of profitability” after rising costs and slowing retail sales ate into the company’s earnings. Amazon is also contending with too many workers after it went on a pandemic hiring spree. In the second quarter, Amazon shaved its headcount by 99,000 people to 1.52 million employees…
In a statement, an Amazon representative said, “While we’re closing some of our older sites, we’re also enhancing some of our facilities, and we continue to open new sites as well…..