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Amazon will close two distribution stations, more than 300 employees affected
local time on Wednesday, Amazon announced that it will close two delivery stations in Baltimore, which together have more than 300 employees.
An Amazon spokesman said the company will offer employees from those sites the opportunity to transfer to other delivery sites in the region. But the spokesman did not specify how many stations there were in the area, simply saying there were "some" stations nearby.
The move appears to be the latest measure by Amazon to scale back the expansion of its sprawling delivery network.
Amazon has canceled plans to open 42 U.S. facilities and delayed construction of another 21, according to MWPVL International Inc, a consultancy that tracks Amazon's real estate purchases.
The company has put on hold the process of opening a 700,000-square-foot facility in Nebraska that is almost fully constructed, but has delayed its opening until 2024.
Amazon's real estate empire exploded during the pandemic due to surging demand for online shopping, and the company now faces a glut of space, Chief Financial Officer Brian Olsavsky said in April. Olsavsky said that from mid-2021 to April 2022, Amazon will double the size of its business and workforce.
Amazon has also scaled back hiring in its retail division this year. Earlier reports said the sector had been hit hard by a surge in inflation.
However, Amazon hasn't downsized every part of its business. It was reported on Friday that the company has been inviting sellers to participate in a new pilot program designed to store products for longer periods of time. While Amazon has historically focused on fast-turning inventory, this new project shows it's looking to gain a larger share of the warehousing market.
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