Amazon has delayed or canceled plans for at least 13 facilities in its distribution network this year, according to local news reports.
Shifts in plans have affected locations in Texas, Florida, Louisiana, Tennessee and California, per reports. Many of these adjustments surfaced following the company’s acknowledgement that it overbuilt its warehouse footprint in April.
Amazon is delaying some warehouse openings so it can reduce 2022 operating expenses following a rocky Q1 earnings report, Marc Wulfraat, president and founder of supply chain consulting firm MWPVL International, said in an email. The change will allow Amazon to avoid incurring further labor costs until at least next year when it needs more network capacity, Wulfraat added.
