A report from Reuters confirmed that Amazon will postpone its Spanish expansion until 2024. This includes the delay in construction of the new warehouses in the country.
(Photo : THOMAS SAMSON/AFP via Getty Images)
A picture shows the Amazon logo on the frontage of an Amazon's centre in Bretigny-sur-Orge, on December 14, 2021.
The reason for this sudden postponement is the slowed-down income and the decrease of online consumers post-pandemic. El Confidential, a publication from Spain, has reported this as they cited unidentified sources inside the company.
At least 10 million square feet of space from Amazon were in the plans to sublet because of this same reason. Investors were shocked as growth of sales were slower than usual, which led the company to cost cutting such as postponement and delays of opening warehouses.
As Amazon stated in the email that has been sent to Reuters, the commitment of the company in the country will remain. They added, "In 2022, we have opened new logistics stations, Amazon Fresh hubs and a logistics centre in Spain." No added information was given regarding the postponement.
Other Postponements and Abandoned Projects
Aside from Spain, Amazon also abandoned other facilities in the United States that are currently in the works or in the middle of planning. A report from Benzinga stated that over 42 facilities will not be opening after its announcements.
Delayed openings for other warehouses were also reported as the constructions were either still unfinished or halted by the company. Hanover and Essex's Amazon delivery stations are currently in the works of shutting down where almost 300 employees will be affected.
(Photo : KENA BETANCUR/AFP via Getty Images)
Amazon and union workers attend rally outside the company building on April 24, 2022 in the Staten Island borough of New York City. - A recent push for worker unionization has gained traction and found some major successes in the United States.
Founder and President of MWPL International Marc Wulfraat said that "There remains some serious cutting to do before year-end -- in North America and the rest of the world. But, having said this, they continue to go live with new facilities this year at an astonishing pace."
Wulfraat also added that the announcement of closing establishments of Amazon are mostly delivery stations and smaller buildings. Currently, 1,200 logistics small and large facilities operate in the United States.
As per Amazon Spokesperson Maria Boschetti, some of the closings of the company buildings, warehouses, and delivery stations were part of the shifting of the company to producing and constructing modern buildings.
She stated, "We regularly look at how we can improve the experience for our employees, partners, drivers, and customers, and that includes upgrading our facilities."
Also Read: Amazon CEO Andy Jassy Supports Remote and Hybrid Work, No Plans on Returning to Office
Amazon's Goal
Yahoo Finance reported that Amazon is expecting its third-quarter net sales will start at $125 billion to $130 billion, which is 4% percent higher than their 13% year-over-year sales. Last Monday, the company's shares traded lower by 0.20% or $128.28.
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Written by Inno Flores
