E-commerce giant Amazon (NASDAQ:AMZN) is reportedly shutting down three of its fulfillment centers in the United Kingdom, affecting roughly 1,200 employees. Meanwhile, Amazon plans to open two new facilities in the country.
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The company plans to close warehouses located in Hemel Hempstead, Doncaster, and Gourock. The company is likely to close these centers due to the falling demand for online shopping in the post-pandemic era.
The new centers will be opened at two new sites, i.e., Peddimore in the West Midlands and Stockton-on-Tees in the Northeast. The work is expected to be completed over the next three years and will result in the creation of nearly 2,500 jobs.
Last week, the company confirmed its largest-ever 18,000 layoff plans with a view to pursuing “long-term opportunities with a stronger cost structure.” These cost-cutting initiatives should support the company’s bottom-line numbers.
Is Amazon a Buy or Sell?
Wall Street is bullish on AMZN stock, with a Strong Buy consensus rating based on 36 Buys and three Holds. The average price target of $137.50 implies 53% upside potential over the next year.
