As part of its cost-cutting efforts and the yearly operations planning review process, Amazon is closing down its wholesale distribution operation in India. Bengaluru, Mysuru, and Hubli are the three cities where the distribution vertical is active. It specializes in purchasing quickly consumable goods from companies and selling them in bulk directly to neighborhood stores like Kirana stores, pharmacies, and department stores to help small businesses.
In the midst of the recession, the computer behemoth with headquarters in the US is now focusing on cost-cutting strategies. Following the huge layoffs, the corporation decreased costs throughout its international operations in light of the global economic downturn. As part of the annual operating planning review procedure, Amazon confirmed in one of the media statements that the company will close its wholesale e-commerce division, Amazon Distribution. Beginning on December 29, 2022, the service will be discontinued.
It’s noteworthy that this is the third Indian firm the company has shut down. The company already revealed plans to end its educational technology endeavor, Amazon Academy, and its food delivery service, Amazon Food. In 2020, Bengaluru-based Amazon launched a test program for its food delivery service. From now on, the service will end on December 29. From August 2023, the company will stop operating its Amazon Academy ed-tech division. For engineering students to study online and prepare for competitive exams like the JEE, Amazon created the Amazon Academy.
What’s next for the Employees?
In the meantime, the business just let go of almost 10,000 workers worldwide. In a formal statement, company CEO Andy Jassy confirmed the layoffs and said that they will continue in the upcoming months of 2023. However, not every employee is immediately let go. Employees have been urged to swap teams within a few weeks or to voluntarily leave the organization by enrolling in the Voluntary Separation Program (VSP)
In accordance with the VSP, employees will receive up to twenty weeks of paid severance in addition to 22 weeks of Base Pay and one week of Base Salary for every six months of service (rounded to the nearest 6 months).