Amazon.com Inc. will close part of its operations in India, suggesting that even the key bull market is not immune from CEO Andy Jassy’s campaign to cut costs.
Amazon.com Inc. will close part of its operations in India, showing that even a key growth market of 1.4 billion consumers is not immune from CEO Andy Jassy’s cost-cutting campaign.
The company said it would stop delivering meals as well as providing bulk consumer packaged goods door-to-door delivery to small businesses. According to a person familiar with the matter, the exits would involve laying off just a few hundred people out of thousands of its workforce, leaving Amazon to rely on its core services like online retail. domestic.
Jassy is cutting costs and creating jobs around the world amid slowing growth in some areas of Amazon’s business. In India, the pullback underscores Amazon’s difficulties in one of the world’s fastest-growing e-commerce markets, where it is facing regulatory heat and competition from corporations. domestic. Dependent industry Ltd. and Tata Corporation as well as Walmart Group overturned car. After investing billions of dollars in everything from grocery delivery to payments in India over the past decade, the company has failed to achieve the dominance it enjoys in markets like WE.
Some projects that are in beta testing are also likely to be postponed, said one person who requested anonymity discussing internal discussions. Amazon has announced that its learning platform Amazon Academy, which provides online exam preparation resources for students competing to enter India’s medical and engineering schools, will be shutting down in the coming months.
The person said the job loss rate in the country could be as low as hundreds, or just a fraction of Amazon’s Indian e-commerce workforce of more than 10,000. Overall, Amazon employs more than 100,000 full-time people in the country for operations worldwide.
The company drew the ire of a labor union that rallied tech workers for making what it called a “voluntarily parting” offer and giving employees limited time – just until the end of the day. December 6 – to decide. Amazon itself does not have a labor union.
Globally, Amazon plans to cut about 10,000 job, its biggest-ever staff reduction, people familiar with the matter said. It expected the smallest revenue increase ever for its holiday quarter, and Jassy imposed a hiring freeze on some corporate roles and closed some experimental and smaller programs.
Amazon launched Amazon Food, its now-defunct food delivery service, in India in 2020. The service delivers food from restaurants and other vendors, serving everything from cakes. paratha to McDonald’s burgers and fries. Amazon’s business unit will continue to provide small retailers and bulk buyers with goods such as groceries and medical supplies, but will no longer offer door-to-door delivery. packaging consumer.
“We are discontinuing these programs in phases to take care of existing customers and partners,” the company said in an emailed statement. “We remain committed to India and will continue to invest in areas where we can deliver value to our customers.”
Over the past decade, Amazon has added millions of sellers on its platform in India and expanded into segments such as groceries and digital payments, while also selling fashion, beauty products, and more. and plane tickets. The company says groceries, consumer electronics, fashion and business-to-business services will be among its focus areas in India.
