Amazon ‘to downsize delivery network and reduce service partners’

Amazon is preparing to downsize its ‘oversaturated’ delivery network and cut back on service partners in the next 12 months, according to leaked company documents.

The e-commerce giant has expanded too quickly by building warehouses and hiring personnel beyonds its needs, according to Brian Olsavsky, Amazon CFO, whose views were revealed in documents first reported by Business Insider.

The company massively scaled up its delivery and logistics network during the pandemic as consumer demand for e-commerce skyrocketed during lockdowns.

However, the return to physical retail and the impact of inflation in the coming months has led the company to reconsider its strategy.

The company will also look to temper the growth of third-party delivery partners.

The document suggested Amazon is planning to sign deals with 451 partners in the next 12 month, down a third from 670 new partner launches last year and would instead focus on the quality of partners, according to Business Insider.

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