Amazon India will close a distribution facility after discontinuing its learning and food delivery platforms

As per the sources, it claims that Amazon India has decided to close Amazon Distribution. The internet and e-commerce company has decided to close both its edtech and food delivery verticals. According to the business, the decisions were made as part of cost-cutting initiatives and the yearly operations planning review process.

Shuts Down Distribution

Fast-moving consumer goods are purchased by the Amazon Distribution vertical and distributed to hundreds of tiny neighborhood shops. But just three cities in Karnataka—Bengaluru, Mysuru, and Hubbali—were served by this organization, which employed roughly 50 people.

According to the sources, an official spokesman stated that they had decided to stop operating Amazon Distribution, our wholesale e-commerce website for small neighborhood retailers in the Bengaluru, Mysore, and Hubli areas, as part of their yearly operating planning review process.

The company will end this initiative gradually to care for its present clients and business partners, the spokesperson continued, adding that it will assist its affected staff during this transition.

About the Amazon Distribution

Amazon Business, the B2B marketplace was designed for organizations like hospitals, manufacturing, universities, schools, government entities, and workplaces, and is distinct from Amazon Distribution.

A day after announcing that it would shut down its online learning platform, founded less than two years ago for Indian high school students. The company also revealed last week that it would be ending the food delivery service it was testing in India. The e-commerce behemoth informed its restaurant partners that the services would end on December 29, 2022. They will nevertheless receive orders up until that point.

Shutting Down Amazon Academy

The COVID-19 pandemic-induced boom in virtual learning coincided with the launch of the Amazon Academy platform, which was shut down in the meantime. At the same time, numerous edtech companies are struggling to keep up with the demand as schools and coaching facilities across India reopen following COVID-19-induced lockdowns.

The closure of the company’s distribution division, food delivery service, and edtech service coincides with the company’s employee layoffs as part of its annual operating planning review procedure.

According to the sources, the number of positions to be eliminated in India was not disclosed by the corporation. Different business units would be used to absorb as many as feasible. Teams in the retail vertical may also be hit after the holiday season. So far, the devices vertical, and particularly the Alexa AI teams, have been impacted.

In a note to staff last week, chief executive officer Andy Jassy announced that Amazon will begin cutting employment globally in early 2023. In the meantime, the e-commerce giant has claimed that it hasn’t fired any employees and that all of these resignations were voluntary as part of a “Voluntary Separation Program (VSP)” in response to a petition submitted by the Nascent Information Technology Employees Senate (NITES) to the Union Labour Ministry regarding Amazon Laying Off Employees Unethically.

Read: Why is Amazon exiting India’s food market?