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Amazon to shutter distribution center trio

200 jobs cut

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Amazon is shuttering three of its distribution centers.

According to The Associated Press, the etailer/cloud-maker will close its centers in Munster, Indiana; Red Rock, Nevada; and Chambersburg, Pennsylvania. The Munster operation was opened as recently as 2007, but the company has since opened two other Indiana distribution centers, one in Plainfield and one in Whitestown.

"As our business grows, we regularly evaluate our fulfillment network to ensue that we are well-positioned for future growth," company spokeswoman Patty Smith told us over email.

"Last year we added approximately 3 million square feet in North American fulfillment center capacity, and this year we plan to expand our facility in Goodyear, Arizona by several hundred thousand square feet. These changes will enable us to better balance product mix and customer orders across the fulfillment network year round."

In closing the three centers, Amazon will cut about 210 jobs. Those left jobless will receive up to eight weeks of severance, and the company says they'll be considered for positions in nearby distribution centers. The company has three other centers in Pennsylvania and one more in Nevada.

At the end of last year, according to its latest earning report, Amazon employed 20,700 people, and it was leasing about 12 million square feet for its North American distribution centers. The closures will reduce that number by around 800,000 square feet, but the company is also adding 300,000 square feet to that center near Phoenix, Arizona.

Like Google, Amazon has stood up well amidst the ongoing Meltdown. In the fourth quarter, sales jumped 18 per cent from the previous year and profit rose 9 per cent. ®

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