According to Bloomberg, Amazon is shrinking its huge distribution business on a large scale. According to the data provided by the global supply chain consulting company MWPVL International Inc., the company has closed dozens of warehouses, with a total space of nearly 25 million square feet. At the same time, the company also postponed the opening of 21 other distribution facilities, with a total area of nearly 28 million square feet. Some European projects have also been canceled, mainly concentrated in Spain. This measure was in sharp contrast to Amazon’s crazy expansion during the new crown epidemic. At that time, in order to cope with the business needs of rapid growth, Amazon claimed that it would double the size of the company’s logistics business. During its peak, Amazon opened a new warehouse every 24 hours.
Earlier media disclosed that Amazon laid out nearly 100,000 people globally in the second quarter of this year, and now it has reduced its logistics distribution business scale on a large scale. Industry experts judge that this series of measures reflect the reality of Amazon’s slowdown in business growth, and also illustrates Amazon’s pessimistic attitude towards the future economic situation and consumer confidence.
Amazon spokesman Maria Boschetti said: “Amazon explores multiple locations once and adjusts according to the needs of the entire network. It is common. Factors, dozens of delivery centers, sorting centers and delivery stations that are under construction and development around the world. “The implication is that the recent move is the company’s normal business adjustment without excessive interpretation.
Compared with the interpretation of people in the industry, Amazon’s response seemed “light and light.” Is this measure, or is it a normal business adjustment or prepare for the “economic cold winter”. What do you think?
Post time: Sep-07-2022