Amazon To Wind Down Parts Of Indian Operations, Sack Hundreds: Report

Amazon To Cut Jobs In India, Sack Hundreds: Report

Worldwide, Amazon plans to cut about 10,000 jobs, significantly reducing the number of people. Inc. will wind down parts of its Indian operations, showing that even the most important market with 1.4 billion consumers is not immune to Chief Executive Officer Andy Jassy’s cost-cutting campaign.

The company said it will stop offering food and grocery delivery services to small businesses. The exit will also affect hundreds of thousands of layoffs, leaving Amazon dependent on its online retail offerings in the country, according to a person familiar with the matter.

Jassy is cutting costs and jobs globally amid slower growth in several Amazon businesses.

In India, the review confirms Amazon’s struggle in the world’s fastest-growing e-commerce market, where it is facing constant heat and competition from domestic company Reliance Industries Ltd. and Tata Group and Walmart Inc.’s Flipkart.

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After plowing billions of dollars into everything from grocery delivery to payments in India over the past decade, the company has failed to do well in markets like the US.

Several projects in beta testing also had to be put on hold, said the person, who asked not to be named for internal discussions. Amazon has announced that its learning platform Amazon Academy, which provides online testing materials to students competing for admission to medical and engineering schools in India, will be closed in the coming months.

Job losses in the country are expected to be in the low hundreds, the person said, or a fraction of Amazon’s more than 10,000 Indian employees. In total, Amazon employs more than 100,000 people full-time in the country in its global operations.

The company has drawn the ire of a labor union that is bringing together tech workers for what it calls “voluntary separation” and giving workers short-term leave – until Dec. 6. – to decide. Amazon itself does not have a labor union.

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Globally, Amazon plans to cut about 10,000 jobs, significantly reducing the number of people, people familiar with the matter said. He has shown a very low income during his vacation, and Jassy has suspended some business activities and closed several pilot and small programs.

Amazon launched Amazon Food, a now-shuttered food delivery service, in India in 2020. It delivers food from restaurants and other providers that offer everything from stuffed paratha bread to McDonald’s burgers and fries. Amazon’s consumer group will continue to offer small retailers and bulk buyers products such as groceries and medical supplies but will no longer provide a gateway to consumer goods.

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“We are gradually retiring these programs to take care of our existing customers and partners,” the company said in an email. “We are committed to India and will continue to invest in areas where we can bring value to our customers.”

In the past decade, Amazon has added millions of sellers to its platform in India and expanded into sectors like food and digital payments, while also selling fashion, beauty and airline tickets. The company said food, consumer electronics, fashion and business-to-business are some of its areas of focus in India.

(Except for the headline, this article has not been edited by NDTV staff and is published from an aggregate source.)

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