Amazon will close three of its businesses in India in order to thrive amid the ongoing economic slowdown.
The company will close its wholesale distribution channel, food delivery service, and educational technology venture.
As part of the annual operating planning review process and cost-cutting measures, Company is shutting down its wholesale distribution business in India. Bengaluru, Mysuru, and Hubli are the cities where the distribution vertical operates.
It purchases fast consumable products from businesses and distributes them wholesale to local shops such as Kirana stores, pharmacies, and department stores in order to support its small businesses. An Amazon India spokesperson confirmed the e-decision tailer to discontinue Amazon Distribution when contacted.
According to the spokesperson, Amazon tests and invests in new ideas to delight customers and constantly evaluates the progress and potential of products and services to deliver customer value. It is noteworthy that this is the company’s third business closure in India. Previously, the company announced the discontinuation of its food delivery service, Amazon Food, as well as its ed-tech venture, Amazon Academy.
The food delivery service began as a pilot project in Bengaluru in 2020. The service will now be discontinued on December 29. Meanwhile, Amazon Academy, the company’s ed-tech division, will be phased out in August 2024. Amazon Academy began as an online learning platform for engineering students to prepare for competitive exams.
Also Read: Edtech platform in India, offered by Amazon to be shut down.
“These are not decisions we make lightly. We are discontinuing this program gradually in order to care for current customers and partners, and we are assisting affected employees during this transition “According to the spokesperson. However, not all employees are fired immediately.
The company has asked its employees to switch teams within a few weeks or to resign voluntarily by enrolling in the Voluntary Separation Program (VSP). Employees will receive 22 weeks of base pay, one week of base salary for every six months of service (rounded to the nearest six months), and up to twenty weeks of paid severance under the VSP.
In addition, employees will receive 6 months of medical insurance coverage under the Insurance Benefit policy or an equivalent insurance premium amount in lieu. Employees who are enrolled in performance improvement programs (PIP) will not be able to enroll in VSP.
