Amazon is not renewing leases at its warehouse facilities in Irvine and West Sacramento, California, Amazon spokesperson Sam Stephenson told Supply Chain Dive in an email.
In Irvine, Amazon will lay off 162 employees as a result of the closure, according to a California WARN Notice processed Sept. 9. The closure is slated for Nov. 7.
Meanwhile, 159 employees will be impacted by the closure in West Sacramento, effective Oct. 30, per the WARN notice.
The spokesperson attributed the closures to Amazon’s consistent network evaluation to “make sure it fits our business needs” and improves employee and customer experience. Stephenson added that the company aims to help impacted employees find new opportunities within the company, including nearby fulfillment centers.
Amazon has been closing sites, enhancing existing facilities or opening new facilities to optimize its network. After a surge of facility openings during the pandemic, Amazon has advanced significant cost-cutting efforts to remove the excess capacity in its fulfillment network.
