Amazon.com to close three U.S. distribution centers

Amazon.com is closing order-fulfillment centers in Indiana, Nevada and Pennsylvania.

Spokeswoman Patty Smith said the three distribution centers are slated to close by the end of May, affecting 210 employees. They will receive up to eight weeks of severance pay plus the opportunity to transfer to another, nearby distribution center, Smith said.

One of the centers slated for closure opened less than a year and a half ago, in Munster, Ind. The others are in Red Rock, Nev., and Chambersburg, Pa. They opened in 2001 and 2003, respectively.

The Seattle-based Internet retailer operated 12 million square feet of leased fulfillment and warehouse space in North America at the end of 2008, up from 8.9 million square feet the previous year. Smith said the three closures represent "an opportunity to streamline the overall network."

This year, Amazon plans to add about 300,000 square feet of space to a distribution center in Phoenix, allowing it to process orders for such big-ticket purchases as patio furniture, flat-screen TVs and barbecue grills.

"We added two fulfillment centers in Indiana in 2008, and we feel those facilities in addition to the other buildings we brought on line in 2008 will allow us to serve customers effectively," Smith said.

Amazon has set April 23 as the tentative release date for its first-quarter financial results.

For the fourth quarter, Amazon made a profit of $225 million, or 52 cents a share, up from $207 million, or 48 cents a share, a year ago. Sales rose 18 percent to $6.7 billion, defying an overall trend toward dismal holiday results for most major retailers.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com