More Cost Cut Initiatives From Amazon; Looks To Shutdown Every US Call Center Barring One

Anusuya Lahiri
·1 min read

  • Amazon.com, Inc (NASDAQ: AMZN) looks to close all but one of its U.S. call centers and shift hundreds of office employees to remote work to save on real estate.

  • The call centers currently planned for shuttering are in Kennewick, Washington; Lexington, Kentucky, and Phoenix, Bloomberg reports.

  • The call center that remains open will most likely be in Huntington, West Virginia, or Houston.

  • Amazon sought to reduce expenses as revenue sales growth slows amid rising inflation and economic uncertainty.

  • The cost-cutting comes after Amazon quickly expanded its warehouses and logistics operations when consumer demand jumped during the early stages of the pandemic.

  • The pandemic also forced companies to embrace remote work for customer service roles, and many employees resisted efforts to return to offices.

  • The report added that the customer support employees comprise a small fraction of Amazon's over 1.5 million workers.

  • Earlier, Amazon looked to sublet at least 10 million square feet of space and vacate even more by ending leases with landlords to cut down on costs amid the slowdown.

  • On Wednesday, Amazon boosted pay for its U.S. front-line employees.

  • After facing flak and growing unionization, Amazon strategized to improve warehouse safety and pay concerns.

  • Price Action: AMZN shares traded higher by 0.10% at $114.92 on the last check Friday.

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