Amazon.com to Close Distribution Centers in Three States
Amazon.com Inc. is shutting distribution centers in three states, and will lay off or transfer to other nearby facilities about 210 employees, the company said Thursday.
Seattle-based Amazon said it is closing the centers in Munster, Ind., Red Rock, Nev., and Chambersburg, Pa., to balance out its operations. "We continue to evaluate the network and all parts of the business to make sure we are positioning ourselves for future growth," said company spokesman Craig Berman.
Amid the recession, the e-commerce company has so far managed to avoid the major sales declines faced by many traditional retailers. In the fourth quarter of last year, its sales surged 18% and profit rose 9%.
Amazon opened the facility in Munster a year and a half ago. Last year it added three million square feet of new distribution space, bringing its total in North America to 12 million square feet.
The company plans to add 300,000 square feet to an existing center in Phoenix later this year, to process large items including patio furniture and televisions.
Amazon's chief executive Jeffrey Bezos spent last week working at a distribution center in Lexington, Ky.
As of Dec. 31, the company had 20,700 employees.
Source http://online.wsj.com/article/SB123812960451755403.html?mod=googlenews_wsj
Amazon.com Inc. is shutting distribution centers in three states, and will lay off or transfer to other nearby facilities about 210 employees, the company said Thursday.
Seattle-based Amazon said it is closing the centers in Munster, Ind., Red Rock, Nev., and Chambersburg, Pa., to balance out its operations. "We continue to evaluate the network and all parts of the business to make sure we are positioning ourselves for future growth," said company spokesman Craig Berman.
Amid the recession, the e-commerce company has so far managed to avoid the major sales declines faced by many traditional retailers. In the fourth quarter of last year, its sales surged 18% and profit rose 9%.
Amazon opened the facility in Munster a year and a half ago. Last year it added three million square feet of new distribution space, bringing its total in North America to 12 million square feet.
The company plans to add 300,000 square feet to an existing center in Phoenix later this year, to process large items including patio furniture and televisions.
Amazon's chief executive Jeffrey Bezos spent last week working at a distribution center in Lexington, Ky.
As of Dec. 31, the company had 20,700 employees.
Source http://online.wsj.com/article/SB123812960451755403.html?mod=googlenews_wsj
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