E-commerce giant Amazon is reportedly selling an office complex in the Northern California Bay Area. The nearly 29-acre site is located in Milpitas, California, a city between Fremont and San Jose.
Amazon reportedly bought property for more than $120 million in 2021, second year of COVID-19 pandemicAmazon spokesperson Steve Kelly told major business channels on Friday that the company is “constantly evaluating our network to ensure it meets our business needs.” Told.
As part of the effort, he said, Amazon has decided to consider selling the Metro Corporate Center site. However, he reiterated that the company is happy to remain part of the community and will continue to deliver to customers from its two delivery stations in Milpitas.
The buyer for the empty complex is reportedly developer Dermody Properties, which plans to turn it into a warehouse, and the property is under contract with an expected completion date in April. bottom. The building is said to be one of eight modern Class A warehouses in over 400,000 square feet servicing the Bay Area. ”
Many, not just one
Amazon also opened new sites in Sioux Falls, South Dakota and Papillion, Nebraska in January, according to local reports.
Additionally, in November, Amazon’s same-day shipping facility was also reportedly opened in Northern California.
trouble of profit
late October, Amazon said third-quarter net sales were $127.1 billion, up 15% from the year-ago quarter. The company’s quarterly net income was $2.9 billion, down nearly 9% year-over-year.
Amazon’s stock traded at about $102 on Friday afternoon, up more than 19% since early 2023, but has fallen nearly 29% over the past year.
Amazon launches largest layoffs in history.
Meanwhile, Amazon has announced that it will lay off nearly 18,000 employees, just a fraction of its 1.5 million global workforce. Largest staff reduction ever.
Amazon CEO Andy Jassy broke the news to employees in a blog post stating that the company will lay off about 18,000 jobs in an effort to cut costs and will begin contacting affected employees on January 18. rice field.
Jassy said in a January 4th post: “These changes will enable us to pursue long-term opportunities with a stronger cost structure.”
The workforce reductions are part of the company’s ongoing annual operational review, which primarily impacts the company’s Amazon store division (which includes its e-commerce business and brick-and-mortar stores) and the PXT organization, which handles human resources and other functions. give.
Jassy was the first to warn employees in November that layoffs were on the horizon, given the uncertain economy and the fact that the company has weathered the pandemic and hired rapidly.
In a Nov. 17 post, Jassy told employees that Amazon had decided to cut several positions across its devices and books business. He also announced a voluntary reduction offer to some employees of the PXT organization.
As part of the company’s annual operating plan review, Amazon examines each business to see what changes need to be made for the long-term health of the business.
However, Jassy warned that more roles will be cut in early 2023 as part of this annual planning process.
Amazon suspends company hiring, citing ‘uncertainty’ economy.
in the meantime, Amazon said it expected a hiring freeze for corporate positions this week.points to “Uncertainty: The economy as the reason behind the move that is likely to continue until the end of the year.”
In a message to employees, Beth Galletti, Amazon’s Senior Vice President of People Experience and Technology, announced the decision made by CEO Andy Jassy and the leadership team, explaining: It is an investment that considers this economy. “
Galletti said the company had already announced a hiring moratorium in some departments in recent weeks, adding that “since the economy is uncertain and we have hired many people in the last few years,” all He said he had decided to restrict new hiring by companies.
The retail giant plans to keep the hiring freeze in place for several months.
In his message, Garetti told employees that Amazon has faced tough economic times in the past, adding: Be more productive. “
Announcement in 2 weeks Amazon founder and former CEO Jeff Bezos warned on Twitter that “this economic potential shows that we need to break out of Hutch,” while Goldman Sachs CEO David Solomon said on Twitter that It suggests that he agreed with what he warned early on that there was “a good chance”. of the US recession.
Amazon’s hiring suspension is the latest sign that big tech companies are predicting a recession. Microsoft recently reported layoffs in several divisions, and Meta implemented his own hiring freeze in late September.