Amazon Continues To Explore Cost Cutting Options As Pandemic Recovery Cools Online Shopping

Amazon.Com, Inc AMZN looked to sublet at least 10 million square feet of space and vacate even more by ending leases with landlords, Bloomberg reports.
Amazon shocked investors after reporting slowing growth and a weak profit outlook attributed to overbuilding during the pandemic.
Amazon could try to negotiate lease terminations with existing landlords, including Prologis, Inc PLD.
Also Read: Amazon Explores Service That Could Reduce Its Capex
Amazon has tasked the KBC Advisors to evaluate the warehouse network and determine where to sublet and terminate leases.
The 10 million square feet Amazon looked to sublet is equivalent to about 12 of its largest fulfillment centers or about 5% of the square footage added during the pandemic.
Excessive warehouse capacity is acting as a pain point following pandemic recovery.
The excess capacity includes warehouses in New York, New Jersey, Southern California, and Atlanta.
The overabundance of space could far exceed 10 million square feet.
Price Action: AMZN shares traded higher by 0.71% at $2,167 premarket on the last check Monday.
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