After the enormous growth during the pandemic, Amazon must be struggling with the first dampers. The company is now closing two warehouses in the US and putting plans to build 42 new facilities on hold for the time being. Employees are not to be laid off in the process, however.
Two warehouses in the Baltimore region will be closed
Probably the most drastic decision may be that for the closure of two warehouses in the Baltimore region, or more precisely, in the Hanover and Essex localities. The decision to close the warehouses, which employ more than 350 people, became known after Amazon filed a notice to that effect with the state Labor Department. It was first reported by local news station WMAR2 News.
To what extent the closures will affect the logistics of the group in the affected region, can not be estimated at this time. However, it is already known that the employees of the two warehouses will not be laid off. According to Amazon, they will instead be given the opportunity to move to another location in the region. “We regularly review how we can improve the experience for our employees, partners, drivers and customers, and that includes modernizing our facilities. As part of this effort, we will be closing our Hanover and Essex delivery stations and offering all employees the opportunity to transfer to several different delivery stations nearby. These facilities will offer improved amenities, including on-site parking and break rooms with cafeteria sales.” Meanwhile, it is not known between which other locations can be chosen.
No expansion in the U.S. soon
In addition to the two closures, Amazon is responding to slumping economic growth with a change of plans regarding further expansion of its network in the US. Thus, it has become known that the group will not build 42 planned facilities, with which the delivery network in the U.S. should once again be significantly condensed. Amazon has also decided to delay the opening of 21 additional facilities. Also affected by the delay is a 65,000-square-foot warehouse in Nebraska that is expected to create about 1,000 new jobs. The opening has been pushed back to 2024.
For Amazons this is not the first damper this year. Also with the house-own delivery service Flex had failed the success-spoiled company. Flex was discontinued in June.