Amazon continues cost-cutting measures, scrapping more warehouse construction projects
Amazon President and CEO Andy Jassy shared on a. recent earnings call that the company is reducing costs in order to make their operations network a top priority. These cost-cutting measures have resulted in slashing operating expenses and cancelling warehouse construction projects that were already underway. Ninety-nine Amazon facilities have been cancelled, closed, or delayed - resulting in a nearly 32.2 million square-feet of space being effected. Some of the states where the the space has been scrapped or delayed include, California, Washington, New Jersey, and Florida.
Amazon has not completely abandoned plans of new facilities, despite this move. According to Amazon spokesperson Steve Kelly, Amazon still has projects planned for an additional 231 facilities and delivery stations. However, Marc Wulfraat, president and founder of MWPVLInternational, has voiced concerns that the ongoing cancellations and closures at Amazon may throw a wrench in these plans.
Amazon’s recent decision to bring employees back to the office five days a week, starting next year, has stirred strong reactions among staff.