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Amazon postpones opening of $200 million fulfillment center

By Nagasunder in Business News, posted June 11, 2022

Amazon is postponing the inauguration of a $200 million distribution center on Manhattan's East Side, one of six scheduled facility openings around the country.

The company said in 2020 that it will develop a 750,000-square-foot building at 6806 Cal Turner Drive and employ over 1,000 people.

Smaller purchases, such as books and gadgets, would be handled by them, with robots assisting with lifting and storage.

Amazon would not provide a price, but Jada Andrews-Sullivan, then-District 2 Councilwoman, stated in a statement that it would cost $200 million.

But Amazon spokesperson Daniel Martin said: “The warehouse was slated to open this year. It is still planned and construction is underway but our timing has shifted”.

He declined to specify when the facility will be finished and what prompted the postponement.

Martin said. “It’s common for us to adjust launch timetables based on capacity needs across the network, we’ll provide an update on launch timing and hiring at a later date.”

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In the San Antonio region, Amazon has roughly a dozen facilities, including fulfillment centers, delivery stations, and a sortation center.

According to media sources, Amazon has lately postponed plans to construct facilities in additional U.S. locations, possibly because to supply chain issues and difficulties obtaining supplies.

The corporation is also reducing its area.

According to the Wall Street Journal, Amazon wants to rent at least 10 million square feet of warehouse space and is considering terminating or renegotiating agreements.

The company reported its first quarterly loss since 2015 — $3.8 billion — for the three-month period ended March 31.

Per the Journal, the dip reflected larger economic developments such as a reduction in internet purchasing as consumers return to shops and inflationary expenses.

Source: San Antonio Express News

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