Amazon is canceling construction of dozens of warehouses in the U.S.

Amazon.com Inc. is abandoning dozens of existing and planned facilities across the United States as it seeks to scale back its sprawling delivery business amid slowing sales growth.

Consulting firm MWPVL estimates that Amazon has closed or canceled plans to open 42 facilities across the country, totaling nearly 25 million square feet of available space. MWPVL also said the company has postponed openings at another 21 locations totaling nearly 28 million square feet and canceled some European projects, primarily in Spain.

Amazon spokeswoman Maria Boschetti said, “We weigh a variety of factors when deciding where to develop future sites to best serve our customers. We are building and growing dozens of warehouses, sortation centers and delivery stations around the world. We often explore multiple locations simultaneously and make adjustments based on demand across our network.

Just this week, Amazon announced plans to close two delivery stations in Maryland next month that employed more than 300 people. The moves are a stark contrast to previous years, when Amazon typically rushed into the fall to open new facilities and hire thousands of workers in preparation for the holiday shopping season.

Amazon said the Maryland closures are part of a move to move jobs to more modern buildings. "We regularly look at ways to improve the experience for employees, partners, drivers, and customers, and that includes upgrading our facilities," Boschetti said. "As part of this effort, we will be closing the Hanover and Essex delivery stations and offering all employees the opportunity to transfer to several different nearby delivery stations."

“Amazon still expects to have some serious cuts to make before the end of the year in North America and other parts of the world,” said Marc Wulfraat, founder and president of MWPVL. “That being said, they continue to bring new facilities online at an incredible pace this year.”

Marc Wulfraat said that most of the closures announced this year were delivery stations, smaller buildings responsible for handing over already packaged items to delivery personnel. The canceled facilities include several planned storage centers, giant warehouses containing millions of items. It was previously reported that as the number of online shopping has been slowing, Amazon has begun planning to sublease at least 10 million square feet of warehouse capacity and is considering options to terminate or renegotiate more leases.