- Amazon is delaying plans to open a new warehouse near Omaha, Nebraska.
- The facility was expected to create 1,000 jobs and bring in more than $200 million to the local economy.
- Amazon CFO Brian Oslavsky told reporters in April that the company is stuck with "too much space."
Less than two years ago, Greater Omaha's Chamber of Commerce touted plans for a 700,000-square-foot Amazon warehouse facility in the Omaha suburb of Papillion. The project was expected to employ 1,000 people and add more than $200 million to the local economy, according to Omaha Chamber economists.
But despite construction being nearly complete, the facility won't open until 2024, according to the Nebraska Examiner, as a dip in e-commerce has Amazon rethinking its massive warehouse portfolio.
"This project remains a crucial piece of our rapidly growing area and we will continue to facilitate its arrival," Veta Jeffrey, the President and CEO of the Greater Omaha Chamber told Insider.
Amazon declined to provide a price tag for the Nebraska facility, but plans included about 1,800 parking spots, trailer spaces, and bike racks, the Examiner reports.
In a statement, Amazon said it's still planning to launch the facility, but had to adjust its timing.
"We know the Papillion community is looking forward to the opportunities we'll be bringing to the area, and we'll share new timing along with information about the great jobs, pay, and comprehensive benefits we'll be offering just as soon as we can," a representative said.
The project joins a growing list of warehouse delays for Amazon. CFO Brian Oslavsky told reporters in April that the company is now stuck with "too much space" after adding to its real estate empire between 2020 and 2022 to keep up with the pandemic-fueled surge in e-commerce demand.
Amazon is reportedly planning to sublet up to 30 million square feet of warehouse space or renegotiate leases, with warehouses in New York, New Jersey, Southern California, and Atlanta likely being affected.
In June, Insider reported that Amazon CEO Andy Jassy was dissatisfied with the company's former worldwide consumer CEO Dave Clark, who was viewed as responsible for Amazon's warehouse overexpansion, overstaffing, and spiraling costs.
