Amazon, which doubled the size of its logistics network at warp speed during the pandemic to well over 400M SF, now is proving that it can backpedal nearly as fast as it grew.
Since disclosing earlier this year that it overestimated the growth rate for e-commerce, resulting in too many warehouses and warehouse workers—and the first quarterly losses for the e-commerce titan since 2015—Amazon has been busy culling its industrial footprint.
The e-retail giant has used every space-reduction method in its toolbox, including shuttering warehouses, subleasing a chunk of its estimated 370M SF of leased industrial space, canceling new fulfillment center projects that haven't broken ground and by delaying the opening of newly built warehouses for up to two years.
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