Amazon Is Building Out Warehouses Like Crazy

Amazon is on a building boom: the company has announced two new fulfillment centers in the last two days, adding a total of more than 2 million square feet.

The new centers are in Phoenix (adding to three others there) and Plainfield, Indiana, and join three other centers announced earlier this year.

During its last earnings call, the company said it would add up to 9 new centers this year, after building out 13 new ones last year.

This is basically good news for Amazon — it means that sales are booming (up 38% in Q2 from the previous year), and that the company is optimistic about the future. But it also means a temporary increase in expenses, which is what drove the stock down after Amazon’s last earnings report.

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Cisco Layoffs Coming?

Bloomberg is reporting today that up to 10,000 employees will be laid off in effort to shore up lacking sales in the last several quarters.  Up to 7,000 will be direct layoffs and another 3,000 will be given early retirement packages.  Given that this week’s government jobs report showed only 18,000 new jobs being created, this represents a big hit….

Let’s hope all the analysts are wrong on this one!