Amazon To Shutdown 3 Distribution Centers

    March 27, 2009
  is closing three of its fulfillment centers in Munster, Indiana, Red Rock, Nevada, and Chambersburg, Pennsylvania, the first time the online retailer has closed a warehouse since 2006.

Amazon said the move is part of a reorganization of its distribution network so it can "better balance product mix and customer orders."

Jeff Bezos
Jeff Bezos

Patty Smith, spokeswoman for Amazon, said the distribution centers would close by the end of May, affecting 210 employees. Smith said "eligible" workers would be given the chance to transfer to other U.S. fulfillment centers.

"A variety of factors went into the plan to close these three buildings," said Smith. "We added approximately 3 million square feet of capacity in the North American fulfillment network in 2008, and will be converting a fulfillment center in Phoenix to accommodate our larger items (such as big screen TVs) and adding several hundred thousand sq feet to that facility."

"This additional capacity allows to the opportunity to better balance product mix and customer orders across the network year-round."

Amazon CEO Jeff Bezos spent the past week working in a fulfillment center here in Lexington, Kentucky.