retail news in context, analysis with attitude

Bloomberg reports that Amazon, as it tries to right-size its delivery infrastructure, "has abandoned dozens of existing and planned facilities around the US, according to a closely watched consulting firm. 

"MWPVL International Inc., which tracks Amazon’s real-estate footprint, estimates the company has either shuttered or killed plans to open 42 facilities totaling almost 25 million square feet of usable space. The company has delayed opening an additional 21 locations, totaling nearly 28 million square feet, according to MWPVL. The e-commerce giant also has canceled a handful of European projects, mostly in Spain, the firm said."

The Bloomberg story notes that CEO Andy Jassy "has pledged to unwind part of a pandemic-era expansion that saddled Amazon with a surfeit of warehouse space and too many employees. The company has typically weaned its ranks of hourly workers by leaving vacant positions open, slowing hiring and tightening disciplinary or productivity standards. But warehouse closings are also part of the mix, and workers are bracing for more. During the second quarter, Amazon’s workforce shrank by roughly 100,000 jobs to 1.52 million, the biggest quarter-to-quarter contraction in the company’s history."

KC's View:

The key here is "right-sizing," and maintaining the flexibility necessary to grow again when necessary.  I have no doubt that this is all part of the game plan.