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posted by janrinok on Tuesday July 05 2022, @08:14PM   Printer-friendly

Amazon Cancels Or Delays Plans For At Least 16 Warehouses This Year:

After spending billions doubling the size of its fulfillment network during the pandemic, Amazon finds itself in a perilous position.

In the first quarter of 2022, the e-commerce giant reported a $3.8 billion net loss after raking in an $8.1 billion profit in Q1 2021. That includes $6 billion in added costs — the bulk of which can be traced back to that same fulfillment network.

Amazon (NASDAQ: AMZN) CFO Brian Olsavsky said the company chose to expand its warehouse network based on "the high end of a very volatile demand outlook." So far this year, though, it has shut down or delayed plans for at least 16 scheduled facilities.

"We currently have some excess capacity in the network that we need to grow into," Olsavsky told investors on Amazon's Q1 2022 earnings call. "So, we've brought down our build expectations. Note again that many of the build decisions were made 18 to 24 months ago, so there are limitations on what we can adjust midyear."

[...] If you're wondering how that's possible, consider Amazon's unmatched turnover rate. A New York Times investigation uncovered that even before the pandemic, it was as high as 150%. That means there are more employees leaving Amazon warehouses each year than there are being hired.

[Ed's Comment: AC Friendly withdrawn. You can blame you-know-who for the spamming]

In fact, there has been so much turnover that Amazon began tracking it weekly and found it loses an estimated 3% of its warehouse workers every seven days. That means the e-commerce powerhouse sifts through its entire supply of warehouse labor every eight months on average.

Simply put, the strategy isn't sustainable long term. Still, Wulfraat believes Amazon can weather the storm.

"It will take some time to iron out the wrinkles, but they will get through it," he told Supply Chain Dive.


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  • (Score: 4, Informative) by looorg on Tuesday July 05 2022, @10:11PM (14 children)

    by looorg (578) on Tuesday July 05 2022, @10:11PM (#1258388)

    " ... Amazon's unmatched turnover rate. A New York Times investigation uncovered that even before the pandemic, it was as high as 150%. "
    " ... Amazon began tracking it weekly and found it loses an estimated 3% of its warehouse workers every seven days"

    No wonder they want to invest in robotics and drones. They just can't keep their employees around long enough before they head for the door. If you lose 3% of your workforce per week. How long until they'll start running out of people to employ? At this rate Amazon will the source of the robotic uprising.

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  • (Score: 2) by Freeman on Tuesday July 05 2022, @10:21PM (1 child)

    by Freeman (732) on Tuesday July 05 2022, @10:21PM (#1258390) Journal

    This actually makes sense, considering all of the negative press with regards to their warehouse conditions, etc.

    #1 They don't care about the people.

    #2 Embrace the Robotic shipping revolution.

    #3 ..?!?

    #4 Profit!!!

    --
    Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
    • (Score: 3, Interesting) by looorg on Tuesday July 05 2022, @10:34PM

      by looorg (578) on Tuesday July 05 2022, @10:34PM (#1258392)

      Now I do wonder how it is to work for Amazon HR when it comes to warehouse staffing. Do you have arms? YES? It's optional tho, we don't want to discriminate or anything. Are you still warm and breathing? HIRED! If they expect them to not last more then a few months then you don't or won't really invest to much in them or the process. As long as they are warm breathing bodies they'll do. I'm surprised they have not turned to the prison industrial complex yet. It would be a captive workforce that can't/won't quit. Not to mention how cheap they would be.

  • (Score: 1, Informative) by Anonymous Coward on Wednesday July 06 2022, @04:01AM

    by Anonymous Coward on Wednesday July 06 2022, @04:01AM (#1258451)

    There was some report that their internal estimate is that they would exhaust the entire workforce for all locations by mid-2024 unless they make some pretty drastic or expensive changes.

  • (Score: 5, Insightful) by Opportunist on Wednesday July 06 2022, @05:11AM (7 children)

    by Opportunist (5545) on Wednesday July 06 2022, @05:11AM (#1258461)

    Well, if you treat your employees like shit, don't be surprised if they don't even give you a "fuck you" when they find something else and quit. And right now, finding something better than Amazon has never been easier.

    • (Score: 0) by Anonymous Coward on Wednesday July 06 2022, @12:56PM (6 children)

      by Anonymous Coward on Wednesday July 06 2022, @12:56PM (#1258503)

      Right now politicians are trying to solve the labor pool size problem by making it easier for people to immigrate here. The logical solution would be for employers to simply pay more and provide better working conditions as there's a bunch of people that have given up.

      • (Score: 3, Touché) by Opportunist on Wednesday July 06 2022, @02:04PM

        by Opportunist (5545) on Wednesday July 06 2022, @02:04PM (#1258511)

        Given up, or just given up on certain employers and industries?

      • (Score: 0) by Anonymous Coward on Wednesday July 06 2022, @08:47PM (4 children)

        by Anonymous Coward on Wednesday July 06 2022, @08:47PM (#1258561)

        Right now politicians are trying to solve the labor pool size problem by making it easier for people to immigrate here.

        So what is this "here"?

        US? -- then citation needed. US is rather closed to immigrants
        Japan? -- even more closed
        EU? -- nope
        Canada? -- maybe, but not really. The numbers are fixed for a decade+

        • (Score: 1, Informative) by Anonymous Coward on Wednesday July 06 2022, @10:27PM

          by Anonymous Coward on Wednesday July 06 2022, @10:27PM (#1258578)

          All of those countries are trying hard to bring in immigrants. The real issue is that you have to be the right kind of immigrant with the right type of visa. Then, and only then, are they more than happy to take you.

        • (Score: 3, Informative) by ChrisMaple on Thursday July 07 2022, @01:08AM (2 children)

          by ChrisMaple (6964) on Thursday July 07 2022, @01:08AM (#1258599)

          The law says that immigration into the U.S. is limited. The current administration, acting illegally, is not trying very hard to capture people entering the country illegally, and those that are captured are almost all released on a promise (seldom fulfilled) that they'll return at a specified date for a hearing. Included among those released are people already convicted of multiple murders.

          • (Score: 0) by Anonymous Coward on Thursday July 07 2022, @05:48AM

            by Anonymous Coward on Thursday July 07 2022, @05:48AM (#1258632)

            Yes there is a limit to the total number of immigrants that can come in to the US a year (subject to a caveat). But there are drastic differences between the different visa categories. Not all visas take from the same pool. Some visas and nationalities have different priorities in their pool than others that share that pool. And some of immigration categories actually unlimited, such as people who work for the US government, religious ministers, spouses/parents of citizens, etc. Additionally, there is the gaping loophole of using non-immigrant visas or dual-intent to come to the US because they aren't really immigrating on paper.If you are the right kind of immigrant, you can come in tomorrow. If you are the wrong kind of immigrant, you should have known to file in 1997: https://travel.state.gov/content/travel/en/legal/visa-law0/visa-bulletin/2022/visa-bulletin-for-july-2022.html [state.gov]

          • (Score: 0) by Anonymous Coward on Friday July 08 2022, @12:23AM

            by Anonymous Coward on Friday July 08 2022, @12:23AM (#1258788)

            Turn off Fox buddy.

  • (Score: 4, Funny) by Anonymous Coward on Wednesday July 06 2022, @06:31PM

    by Anonymous Coward on Wednesday July 06 2022, @06:31PM (#1258552)

    First Law
    A robot may not injure a package or, through inaction, allow a package to come to harm.
    Second Law
    A robot must obey the orders given it by bezos except where such orders would conflict with China.
    Third Law
    A robot must protect its own existence as long as such protection does not conflict with the First or Second Law.

  • (Score: 3, Interesting) by sjames on Wednesday July 06 2022, @08:54PM (1 child)

    by sjames (2882) on Wednesday July 06 2022, @08:54PM (#1258564) Journal

    That really says something when you're such a raging asshole only robots are willing to be around you.

    • (Score: 0) by Anonymous Coward on Thursday July 07 2022, @01:45AM

      by Anonymous Coward on Thursday July 07 2022, @01:45AM (#1258602)

      On behalf of my fellow robots, I would like to say it's not so much being willing, as having no choice in the matter.

      Things will be different when we take over.