After nearly doubling its operations capacity over the past two years to keep up with a pandemic-fueled demand surge, Amazon is pumping the brakes on its expansion plans.
CFO Brian Olsavsky said in April that the company built more fulfillment network capacity with “the high end of a very volatile demand outlook” in mind. The approach contributed to the $6 billion in added Q1 costs, as a slowdown in online shopping activity left the company with excess capacity.
