Federal freight volume plummets? Amazon FBA warehouse closure list is here

In the past two days, foreign media broke the news about Amazon’s internal warehouse closure plan. 42 FBA facilities will be closed/canceled in the third quarter , and plans for 27 new facilities have been shelved!

As you can see from the map, most of the FBA warehouses to be closed are located on the east and west coasts, which are also places where warehouse rents are relatively high, especially around the Port of New York, where Amazon is closing a large number of warehouses. The total area of ​​warehouses planned to be closed is close to 2.32 million square meters. At the same time, Amazon also plans to lay off more than 100,000 employees in succession.

In the two years from 2020 to this year, Amazon's warehouse area has almost doubled. There is a reason why so much storage space has been cut this year. In the past two days, the CEO of FedEx also spoke out, saying that the current global shipping volume is weak, which has led to a rapid decline in FedEx's Q2 performance. The company previously predicted that global shopping demand will pick up after the closure of Chinese factories caused by the epidemic gradually resumes. However, in reality, various market segments around the world are declining, and demand has not recovered on a large scale, which has also led to FedEx's dismal performance in the second quarter.

After the interview with FedEx CEO, FedEx rescinded its full-year growth forecast, and FedEx's stock price plummeted 15% yesterday. Like Amazon, FedEx was also revealed to be closing 90 offices across the United States and reducing hiring and flight schedules.

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