The e-commerce company, Amazon is shutting down its wholesale distribution business in India. This is part of the annual operating planning review process and cost-cutting measures.
This has been operating the distribution vertical in three cities Bengaluru, Mysuru, and Hubli. The company is currently working on cost-cutting measures amid the economic slowdown. This is the third business the company has closed in India.
This segment of the business of amazon deals in buying fast consumable products from businesses and distributes them wholesale directly to local shops like Kirana stores, pharmacies, and department stores to support their small business.
Earlier, Amazon announced that the company will shut down its food-delivery business in India on December 29 this year. This was launched in India in May 2020 in parts of Bengaluru.
The company said, “We don’t take these decisions lightly. We are discontinuing these programs in a phased manner to take care of current customers and partners and we are supporting our affected employees during this transition.”
Followed by the closure of the Amazon Academy platform was a platform that provided coaching for competitive exams including Joint Entrance Examination (JEE), which allows entry into top engineering colleges across India.
The company planned the closures “in a phased manner to take care of current customers”. Recently, Amazon laid off nearly 10,000 employees. The company employs more than 1.5 million employees globally, which includes hourly staff. This report of layoffs follows headcount reductions at other tech firms.
These layoffs affected nearly three percent of Amazon’s corporate employees and less than one percent of its global workforce. The company already froze hiring in September. In October, the company stopped hiring for more than 10,000 open roles in its core retail business.
Amazon also stopped corporate hiring across. The company from April- September reduced its headcount by almost 80,000 people.