Amazon.com to close three US distribution centers
Amazon.com to close three US distribution centers

The Seattle retail online biggie Amazon. com Inc. will soon be closing its three US distribution centers - in Munster, Indiana; Red Rock, Nevada; and Chambersburg, Pennsylvania.

The company's decision to close down the distribution centers, the first time since 2006 that Amazon has decided to close a warehouse, implies that nearly 210 employees will either be laid-off or transferred to other nearby units.

The closures have been planned to balance out Amazon's operations in terms of product mix and customer orders, and are part of the company's reorganization move aimed at its fulfillment network.

Saying that the company plans to move its current capacity to larger warehouses, company spokesman Craig Berman said: "We continue to evaluate the network and all parts of the business to make sure we are positioning ourselves for future growth."

The recession notwithstanding, the e-commerce company thus far has effectively managed to avert any big declines in sales, which have marred most of the conventional retailers. Amazon's 2008 fourth quarter sales indicated an increase of 18%, with the profits rising 9%.

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