Amazon: Amazon.com Inc. will discontinue some of its operations in India, demonstrating that Chief Executive Officer Andy Jassy’s cost-cutting drive is having an impact on even this important growth region with its 1.4 billion people.
The business announced that it is discontinuing bulk doorstep delivery of packaged consumer goods to small businesses as well as meal deliveries. According to a person familiar with the situation, just a small portion of Amazon’s workforce will be laid off as a result of the exits, leaving the company to rely on its core businesses like online retail in the nation.
Amid sluggish growth in a number of Amazon’s business segments, Jassy is cutting costs and employment opportunities globally.
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Slowdown in India posing difficulties for Amazon
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 Ltd. and Tata Group, as well as 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 corporation 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 that were in beta testing would be shelved. Amazon has announced that its Amazon Academy learning platform, which provides online exam prep materials for students vying to get into India’s engineering and medical colleges, will close in the coming months to follow.
The individual predicted that the number of jobs lost in the nation would be in the low hundreds, or only a small portion of the approximately 10,000 employees employed by Amazon in India’s e-commerce. In total, Amazon employs more than 100,000 individuals full-time in the nation to support its international operations.
The business has come under fire from a labour organisation representing tech workers for making what it refers to as “voluntary separation” offers and only giving employees until December 6 to make a decision. There is no union at Amazon itself.
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Amazon’s biggest-ever staff drop
According to people familiar with the situation, Amazon wants to reduce around 10,000 positions globally, which would be its biggest-ever staff drop.
In India, Amazon introduced Amazon Food in 2020, the food delivery service it is now discontinuing. It provides a variety of meals from restaurants and other suppliers, including paratha-stuffed bread and McDonald’s hamburgers and fries. Despite no longer offering door delivery 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 in order 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 added millions of new merchants to its platform in India, expanded into new markets like groceries and digital payments, and increased its sales of apparel, cosmetics, and travel services. The company stated that its main areas in India will include grocery, consumer electronics, fashion, and business-to-business goods.
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