a downsizing of their warehouses

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Several of the largest technology companies in the world are not going through their best moment, as shown by the cost containment policies that they have recently decided to apply and that, to a large extent, has to do with employment. Amazon is one of them.

Those of Jeff Bezos already suggested in their last quarterly balance of results that they were going to cut their logistics workforce, oversized during the first years of the pandemic, and now Bloomberg Has revealed that the e-commerce giant also wants to get rid of a significant part of its warehouses.

three thousand square kilometers. According to this information, the reduction in e-commerce activity after the peak reached during the harshest phases of the pandemic, added to the poor economic results recorded during the first quarter of 2022, has led Amazon to decide to unload, by least temporarily, from a significant number of its stores.

In total, the e-commerce giant would be looking to release some 3,000 square kilometers of space by subletting the warehouses that it rented in the last two years and that it now barely uses. It would also be negotiating the termination of some of these contracts. Although the sources consulted by Bloomberg do not agree, and some of them point out that the final figure could be much higher.

In United States. At the moment, these measures seem to be applied mainly in the United States, and would mainly affect warehouses in New York, New Jersey, California and Atlanta. It is not known if the company is considering shedding space outside of the United States.

If the surface that Amazon finally gets rid of is 3,000 square kilometers of warehouses, this space would be approximately equivalent to that of its 12 largest logistics centers in the world, and it would be around 5% of the land added during the pandemic.

That yes, Amazon would be planning to sublease a good part of these surfaces for one or two years only, which indicates that the company anticipates that the reduction in its sales is something conjunctural derived from the bad world economic situation, and that it will be able to recover the level of transactions of the pandemic once the circumstances of the international market improve.

Staff reduction. The decrease in space will not be the only measure that Amazon will apply in its logistics division to contain spending. In his latest quarterly earnings release, the company’s chief financial officer, Brian Olsavsky, noted that the company had hired warehouse staff too quickly during the pandemic to cope with increased activity and cover the casualties of workers infected by the coronavirus. , according to the washington post.

Some statements that suggest possible layoffs among warehouse staff now that the volume of sales has decreased and, above all, that Amazon has seen its income greatly diminished: during the first three months of 2022 it registered its worst quarterly balance of results in 20 years.

Other measures. In addition to the cuts in its logistics division, Amazon has also increased the price of some of its products to try to compensate for its poor results and, above all, reassure its investors. Thus, e-commerce is charging 5% more to the sellers of its platform and has increased the price of the annual Prime subscription from 119 to 139 dollars, although for the moment only in the United States.

Several of the largest technology companies in the world are not going through their best moment, as shown by the…

Several of the largest technology companies in the world are not going through their best moment, as shown by the…

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