In his second annual letter to shareholders as Amazon CEO, Andy Jassy has announced a coast-to-coast reorganization of the e-commerce giant's national fulfillment network into eight "interconnected" regional hubs.

The tech giant also said it is deploying new AI-driven algorithms to predict what customers in the regional hubs will need and to guide inventory placement systems.

"Until recently, Amazon operated one national US fulfillment network that distributed inventory from fulfillment centers spread across the entire country," Jassy said, in the letter.

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