Amazon India to shut down distribution unit after closing food delivery and learning platforms

Amazon India has decided to shut down Amazon Distribution, the company's spokesperson told CNBC-TV18. The tech and e-commerce company recently decided to shut down its food delivery and its edtech vertical too.

As per the company, the decisions have been taken by the company as a part of the annual operating planning review process and the cost-cutting measures.

The Amazon Distribution vertical procures fast-moving consumer goods from companies and distributes them to hundreds of small neighbourhood stores. However, this unit operated only in three Karnataka cities - Bengaluru, Mysuru, and Hubbali - and involved about 50 employees.

“As part of our annual operating planning review process, we have made the decision to discontinue Amazon Distribution, our wholesale e-commerce website for small neighbourhood stores around Bengaluru, Mysore & Hubli," said an official spokesperson.

The spokesperson further added that the company will be discontinuing this program in a phased manner to take care of current customers and partners and we are supporting our affected employees during this transition.

Amazon Distribution is distinct from Amazon Business, the B2B marketplace on Amazon.in meant for institutions such as hospitals, manufacturers, universities, schools, government bodies, and offices.

The e-commerce giant told its restaurant partners that it will discontinue the services from December 29, 2022. However, till then they will receive the orders.

Meanwhile, shutting down the Amazon Academy platform which was launched early last year amid a boom in virtual learning during the COVID-19 pandemic comes at a time when multiple edtech firms are reeling under the pressure of schools and coaching centres reopening across India after COVID-19-induced lockdowns.

At the same time that Amazon is laying off employees as part of its annual operating planning review process, the company is shutting down its distribution unit, food delivery service, and edtech offering.

The company didn't specify how many jobs would be cut in India. Various business units will be tapped to absorb as many as possible, according to sources from within the company. So far devices vertical and especially the Alexa AI teams have been impacted and teams in the retail vertical might get impacted after the holiday season, a source from within the company told CNBC-TV18.com.

Amazon will cut jobs again worldwide in early 2023, said chief executive officer Andy Jassy in a memo to employees last week.

Meanwhile the e-commerce giant in response to a petition filed by theNascent Information Technology Employees Senate (NITES) to the Union Labour Ministry with regards to Amazon Laying off employees unethically has said that it hasn't sacked any employees and all these resignations were voluntary as part of a 'Voluntary Separation Program (VSP)'.