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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[Ed's Comment: AC Friendly withdrawn.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: 3, Interesting) by Anonymous Coward on Thursday July 07 2022, @12:27AM (2 children)

    by Anonymous Coward on Thursday July 07 2022, @12:27AM (#1258592)

    [Yet a totally different AC in this thread] I've only ever browsed at -1 going all the way back to the late 90s. I've never found the troll and shitpost comments too troublesome to deal with except for the copypasta that fills the screen that requires scrolling more than normal. The thing about browsing at -1 is that I really don't pay a lot of attention to what a comment is modded to, because I see them all, so +5 doesn't stand out much more than a +1 to me. Even in the slashdot heyday I never could relate to people who found browsing at -1 "unbearable." I always found it annoying when there was a -1 top post and a +3 somewhere down the line in how the thread would be presented to me if I had any browsing threshold set, so I just found it easier to always see all of the comments and make my own decisions. There is always that benefit of seeing someone unfairly modded down below zero and be able to fix it, but I rarely every see that now or back then. So I don't really get hung up on what gets modded up or down. I do, however, like to use my mod points and promote good comments, because I think people do care, but I almost never mod anything down.

    Maybe I've burned out a very long time ago during the usenet flamewars, or maybe I'm that much older now and I don't care about internet arguments, so it doesn't get to me that much. You've got your equivalents of the uncle at Thanksgiving who has to keep spouting whatever is the cable "news" mouthpiece talking point of the week, but I treat it like I do at Thanksgiving and roll my eyes and talk with others. However, even the Thanksgiving uncle has interesting things to say on non-talking-point topics and I'm happy he came to dinner, so I just view the community here as a large dysfunctional family, just like you get in real life.

    Because I read more than I post, I try to keep in mind that the opinions and views of the ones that post the most doesn't necessarily reflect the community thoughts and opinions, so it is disappointing to see some of the comments in the ycombinator links above. I really prefer to have very little politics here because there is very little discourse on that any more, things have become so nasty and zero-sum, so if a topic turns that way, once it devolves into repeating of this week's talking point spin then I move on to the next thread. I'd welcome interesting arguments there, but unfortunately I don't think we'll be ready for that again for quite a while, at least until we get tired of grievance politics and move on to talking about solutions.

    So anyway, it is a shame that people have moved on if it really was due to the comments section. I've stuck around from the beginning because I like the articles put forward and I like learning from other people. I also like submitting stories for consideration that I think others would like or would generate some interesting discussion. I think I'm pretty smart in the areas that I'm smart about, but there are a lot of areas I'm not smart in and I like to hear people who are smart in those areas (or at least sound smart in those areas). There are some stores that generate very few comments, but that's fine because those stories are usually about something really cool, but there's not much any of us are going to add to it except maybe to make a witty comment (such as a new observation about Uranus, where either we're going to break out into a discussion of complex atmospheric chemistry, or more likely make a few sophomoric comments because not many of us know a lot about complex atmospheric chemistry, but it doesn't mean that I didn't find the article really cool).

    Starting Score:    0  points
    Moderation   +3  
       Interesting=3, Total=3
    Extra 'Interesting' Modifier   0  

    Total Score:   3  
  • (Score: 0) by Anonymous Coward on Thursday July 07 2022, @03:19AM

    by Anonymous Coward on Thursday July 07 2022, @03:19AM (#1258615)

    > [Yet a totally different AC in this thread] I've only ever browsed at -1

    I'm yet another AC (this is first post in this thread) and I'd just like to second the parent--if I had time to think things through I'd likely write something very similar and tolerant (but busy this week).

    I am logged in, and yes there is a "default-to post-as-AC" button that I have turned on. I'm also the SN resident post-theological (I've posted the following link several times previously), []

  • (Score: 2, Insightful) by Anonymous Coward on Thursday July 07 2022, @04:28AM

    by Anonymous Coward on Thursday July 07 2022, @04:28AM (#1258625)

    Same here, apart from the copypasta that fills an entire screen, I never found anything to be so troublesome as to be worth filtering out posts based on score. In my experience, the high value posts will often times be either -1 or 5, with the ones at 0 being the ones that are typically of little value. Those are the ones that I'd filter out if I could.

    But, ultimately, filtering out posts just means that you see only one side of the conversation.