Amazon is organizing to sublease some of its warehouse house now that the pandemic-fueled surge in on the net purchasing, which aided the e-commerce large rake in soaring gains in the previous two a long time, has eased.

Subleasing will allow the corporation to “relieve the economic obligations connected with an present developing that no for a longer period meets” its wants, Amazon spokesperson Alisa Carroll mentioned.

Carroll did not disclose how much area the firm plans to sublet. But citing nameless resources, Bloomberg Information and The Wall Road Journal claimed previously that the retailer would sublease at least 10 million square ft of room and could finish extra of its leases in states together with New York, New Jersey and California.

Seattle-primarily based Amazon doubled the dimension of its operations in the course of the pandemic, adding a lot more warehouses and employees to keep up with demand from homebound individuals who felt more comfy buying issues online. But as the worst of the pandemic eased, it found alone with much too considerably warehouse area and also numerous personnel.

“Subleasing is anything a lot of founded firms do to enable deal with their true estate portfolio,” Carroll said.

Previous thirty day period, the enterprise claimed its very first quarterly reduction since 2015, fueled by the e-commerce slowdown and a significant create-down of its financial commitment in the electrical-car or truck startup Rivian Automotive. In a statement launched last thirty day period with its earnings effects, CEO Andy Jassy reported the organization was now concentrated on strengthening productivity.