Amazon closing 2 facilities that employ 300+ people, cancelling plans for 42 new buildings

Amazon announced Wednesday that it will be closing two of its Baltimore-area warehouses that employ 353 people total – the latest in the e-commerce giant’s moves to scale back expansion.

A spokeswoman for the company told local news outlet WMAR-2 that both facilities would be closing on Oct. 25 but all employees will be offered positions at other delivery stations nearby.

“We regularly look at how we can improve the experience for our employees, partners, drivers and customers, and that includes upgrading our facilities,” she said.

“As part of that effort, we’ll be closing our delivery stations in Hanover and Essex and offering all employees the opportunity to transfer to several different delivery stations close by,” the spokeswoman added, noting those facilities had upgraded amenities like onsite parking and catered breakrooms.

Amazon doubled the size of its operations and workforce over the past two years to keep up with demand from locked-down consumers during the COVID-19 pandemic, according to its chief financial officer in April.

"We have too much space right now versus our demand patterns," CFO Brian Olsavsky said on a call with reporters at the time.

"We are using space that we put into place for over the last two years in a very different environment."

The Baltimore closures are part of efforts by the company to readjust as quarantines relaxed and demand for e-commerce fell. Amazon has scrapped plans to open 42 facilities in the U.S. and delayed plans for 21 more, according to Bloomberg.

In July, Amazon decided to delay the opening of a 70,000-square-foot warehouse in Nebraska despite construction being nearly complete. The company expected the project to employ 1,000 people and add more than $200 million to the local economy, according to Greater Omaha’s Chamber of Commerce.