Report: Amazon India would lay off hundreds and wind down some of its operations in 2022.

Report: Amazon would lay off hundreds and wind down some of its operations in India in 2022. 

Amazon.com India. will discontinue some of its operations in India, demonstrating that Chief Executive Officer Andy Jassy’s cost-cutting drive is impacting even this vital growth region with its 1.4 billion people.

Amid sluggish growth in several of Amazon’s business segments, Jassy is cutting costs and employment opportunities globally. The slowdown in India highlights Amazon’s difficulties in one of the world’s fastest-growing e-commerce countries, where it must contend with regulatory pressure, domestic conglomerates Reliance Industries Limited and Tata Group, and Walmart Inc.’s Flipkart, and fierce competition.

The business announced that it is discontinuing bulk doorstep delivery of packaged consumer products to small companies and meal deliveries. As per a source familiar with the situation, just a small portion of Amazon’s thousands-person workforce will be laid off due to the exits, leaving the company to rely on its core businesses like online commerce in the nation.

Despite investing billions of dollars into everything from payments to grocery delivery over the last ten years, the firm has not been able to establish the kind of market dominance it has in countries like the US.

The insider, who requested to remain anonymous because they were discussing internal deliberations, also predicted that some projects in beta testing would be shelved. Amazon has stated that its Prime Academy learning program will close, which provides online exam prep materials for students vying to get into India’s engineering and medical colleges.

The individual predicted that the number of jobs lost in the nation would be in the low hundreds or only a tiny portion of the approximately 10,000 employees employed by Amazon in India’s e-commerce. In total, Amazon employs over 100,000 individuals full-time in the nation to support its international operations.

The business has come under fire from a labor organization representing tech workers for offering what it refers to as “voluntary parting” shows and only giving employees until December 6 to make a decision. There is no union at Amazon itself.

It provides a variety of meals from eateries and other suppliers, including paratha-stuffed bread and McDonald’s hamburgers and fries. Despite no longer offering door deliveries of packaged consumer items, Amazon’s business-customer segment will continue to supply small shops and bulk customers with goods like groceries and medical supplies.

The company stated in an email that it was ending the initiatives gradually to protect its present clients and partners. We are still dedicated to India and will keep investing in sectors where we can benefit our clients.

Over the past ten years, Amazon has introduced millions of new merchants to its platform in India, expanded into new markets like grocery and digital payments, and increased its sales of apparel, cosmetics, and travel services. The company stated that its main areas in India would include grocery, consumer electronics, fashion, and business-to-business goods.

Global Amazon Layoff

According to familiar sources, People with knowledge of the matter claim that Amazon plans to eliminate 10,000 jobs globally, which is the largest workforce reduction in company history.

For the Christmas quarter, it has projected the smallest sales increase ever. In addition, Jassy halted hiring for some corporate jobs and closed down a handful of smaller and more experimental firms.

In 2020, Amazon introduced Amazon Food to India, however, the service is no longer available. Amazon plans to cut 10,000 jobs worldwide, which would be the largest personnel reduction in company history. The smallest sales rise in projection history is for the holiday quarter.

Amazon launched Amazon Food in India in 2020, but the company no longer offers food delivery. It offers food from restaurants and other vendors, such as McDonald’s hamburgers and fries, paratha, and stuffed bread. However, Amazon’s business segment will continue to provide small businesses and bulk purchasers with goods like medical supplies. However, it would no longer provide boxed consumer items door delivery.

The company stated in an email that it was gradually ending its initiatives to protect its clients and partners. We are still dedicated to India and will keep investing in sectors where we can benefit our clients. Amazon.com Inc. will reduce some of its operations in India, demonstrating that Chief Executive Officer Andy Jassy’s cost-cutting drive isn’t immune to the 1.4 billion-consumer vital growing market.

The business announced that it is discontinuing bulk doorstep delivery of packaged consumer items to smaller firms as well as meal deliveries. Based on a person close to the situation, just a small portion of Amazon’s thousands-member workforce will be laid off as a outcomes of the exits, enabling the company to focus on its core businesses like domestic online retail.

Despite slowing growth in various parts of Amazon’s business, Jassy is cutting costs and hiring personnel all around the world. The slowdown in India highlights Amazon’s difficulties in one of the fastest in the world e-commerce countries, where it must contend with regulatory pressure, domestic heavyweights Reliance Industries Ltd. & Tata Group, but also Walmart Inc.’s Flipkart, and fierce competition.

Despite investing billions of dollars in everything from payments to grocery delivery over the past ten years, the company has not been able to establish the kind of market dominance it has in countries like the US.

According to the person who requested anonymity while speaking about internal debates, some projects that are now in beta testing too are probably going to be shelved. Amazon has stated that the closure of its Amazon Academy platform, which provides online exam preparation materials for students vying to enroll in India’s engineering and medical colleges, will take place soon. 

According to the source, the number of jobs lost in the nation will probably be in the low hundreds or only a small portion of Amazon’s approximately 10,000-person India e-commerce workforce. In total, Amazon employs more than 100,000 employees in the nation full-time to support its global operations.

The business has come under fire from a labor organization representing software engineers for presenting what it refers to as “step down” offers and providing staff members with a short window of time to decide until December 6. There is no union at Amazon itself.

According to a source known with the case, Amazon wants to eliminate around 10,000 positions worldwide, which would be its largest-ever staff drop. For its holiday quarter, it has predicted the weakest revenue gain ever. Some corporate roles have a hiring freeze in place and shut down some of the smaller programs.

In India, Amazon introduced Amazon Food in 2020, the food delivery service it is now discontinuing. It provides a variety of meals from eateries and other suppliers, including paratha-stuffed bread and McDonald’s hamburgers and fries. Small retailers and large purchasers will continue to get products like groceries and medical supplies from Amazon’s business-customer unit. However, it will no longer provide packaged consumer items door delivery.

The company stated in an email that it was ending the initiatives gradually in order to protect its present clients and partners. We are still dedicated to Indians and will keep investing in sectors where we can benefit our clients.

Over the past ten years, Amazon has introduced millions of new merchants to its platform in India, expanded into new markets like supermarkets and digital payments, and increased its sales of apparel, cosmetics, and travel services. According to the corporation, its target areas in India would include grocery, consumer electronics, fashion, and business-to-business services.

Edited by Prakriti Arora