NEW YORK (1010 WINS) -- Amazon is planning to sublet over 30 million square feet of warehouse space, including buildings in New York and New Jersey.
Profits for the mega corporation rose over 200% in the first year of the pandemic as Americans turned to online shopping to avoid the health risks associated with brick-and-mortar stores.
Amazon hired hundreds of thousands of new staff and bought real estate across the nation for new fulfillment and distribution centers in order to expand its order capacity.
As the pandemic boom waned, Amazon announced its first quarterly loss since 2015.
The company partially blamed the $6 billion deficit on excess capacity leftover from the peak of pandemic online shopping.
Now, in an attempt to climb back into the black, Amazon is planning on subleasing warehouse space in New York, New Jersey, Southern California and Atlanta — some of the largest metropolitan areas in the country.
“Subleasing is a very common real estate practice,” an Amazon spokesperson said in a statement. “It allows us to relieve the financial obligations associated with an existing building that no longer meets our needs. Subleasing is something many established corporations do to help manage their real estate portfolio.”
The company has not announced which buildings might be sublet, how many staff could be laid off or whether shipping capacity in these areas could be impacted.
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