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Amazon has too much warehouse space and would like to buy your company


Amazon acknowledges that it may have grown too swiftly during the pandemic.

image credits: techmarmot

As the pandemic-fueled enthusiasm for ecommerce has waned, Amazon may now have too much warehouse space.

According to Bloomberg, the retail behemoth could start subletting over 10 million square feet of space and might potentially vacate even more by terminating leases with landlords.


According to unidentified sources, surplus space difficulties are affecting warehouses in New York, New Jersey, Southern California, and Atlanta.

What is the scope of the issue?

According to two sources, Amazon’s excess space problem might be more than 10 million square feet, with one source stating it could be quadruple that.

Amazon did not specify how much space it had extra, but spokeswoman Alisa Carroll told the Associated Press that the move will “relieve the financial commitments associated with an existing structure that no longer fits its needs.”


“Many established firms use subleasing to assist manage their real estate holdings,” Carroll remarked.

The reports come as Amazon appears to be adjusting to a post-pandemic environment of slower development.

The announcement comes after Amazon announced a net loss of $3.8 billion in the first quarter of this year, its first since 2015, compared to a profit of $1 billion in the same period last year.


Sales did, however, increase by 7% to $116.4 billion in the quarter, compared to a 44 percent increase in the same period of 2021.

However, Amazon’s cloud hosting section, Amazon Web Services (AWS), had a great first quarter, claiming a 32 percent revenue increase.

“Now that we’re no longer chasing physical or staffing capacity, our teams are laser-focused on improving productivity and cost reductions across our fulfilment network,” Amazon CEO Andy Jassy stated in the company’s most recent earnings report. “We’ve done it before and know how to do it.”


“While this may take some time as we work through ongoing inflationary and supply chain pressures, we’re seeing encouraging progress on a number of customer experience dimensions, including delivery speed performance, which is now approaching levels not seen since the months leading up to the pandemic in early 2020.”

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