📦 Quebec closures
Amazon is shutting all seven Quebec warehouses, cutting 1,700 jobs. Workers will receive up to 14 weeks’ severance, but unions claim anti-union motives. The closures, which include fulfillment and delivery centers, come after Amazon reviewed its operations in the province. The company will outsource local delivery services to third parties.
🇦🇷 Argentina struggles
In Argentina, Amazon faces steep tariffs and complicated customs, doubling import costs. MercadoLibre, with 100M monthly visits, dominates e-commerce. Smugglers, or "bagayeros," further challenge Amazon by offering cheaper and faster alternatives. Despite free shipping offers, most Argentines prefer MercadoLibre for reliability and speed.
📉 Global strategy shift
Amazon's challenges highlight a shift in its global strategy. In Quebec, it's scaling back operations to cut costs. In Argentina, the company appears to be testing the waters. Unlike its $5B investment in Brazil, Argentina sees minimal infrastructure development, signaling Amazon’s cautious approach in a competitive market.
🔮 What’s next for Amazon?
Analysts see these moves as Amazon recalibrating its growth strategy. Quebec’s closures show a focus on cost-cutting, while Argentina’s struggle underscores regional complexities. For Amazon to thrive in Argentina, it must navigate tariffs and build trust. Its next steps will determine whether it can compete with regional giants like MercadoLibre.
Are Amazon's global struggles a sign of bigger issues?
