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Amazon Continues To Explore Cost Cutting Options As Pandemic Recovery Cools Online Shopping

  • Amazon.Com, Inc AMZN looked to sublet at least 10 million square feet of space and vacate even more by ending leases with landlords, Bloomberg reports.
  • Amazon shocked investors after reporting slowing growth and a weak profit outlook attributed to overbuilding during the pandemic.
  • Amazon could try to negotiate lease terminations with existing landlords, including Prologis, Inc PLD.
  • Also Read: Amazon Explores Service That Could Reduce Its Capex
  • Amazon has tasked the KBC Advisors to evaluate the warehouse network and determine where to sublet and terminate leases.
  • The 10 million square feet Amazon looked to sublet is equivalent to about 12 of its largest fulfillment centers or about 5% of the square footage added during the pandemic.
  • Excessive warehouse capacity is acting as a pain point following pandemic recovery.
  • The excess capacity includes warehouses in New York, New Jersey, Southern California, and Atlanta.
  • The overabundance of space could far exceed 10 million square feet.
  • Price Action: AMZN shares traded higher by 0.71% at $2,167 premarket on the last check Monday.
  • Photo via Wikimedia Commons

Source: Amazon Continues To Explore Cost Cutting Options As Pandemic Recovery Cools Online Shopping

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