After food service, Amazon India shuts down another business

Amazon has decided to eliminate three of its operations in India so that it may continue to prosper despite the recent economic slowdown. It has been decided that the wholesale distribution channel, the food delivery business, and the ed-tech venture would all be terminated by the corporation.

In Brief:

  • Amazon is winding down its wholesale distribution business in Bengaluru, which was based there.
  • The Amazon food services will be discontinued beginning on December 29, as previously announced by the company.
  • Additionally, the online education platform Amazon Academy will be discontinued in the year 2023.
Amazon India is closing another company after food service.
Amazon India is closing another company after food service.

As part of the process of conducting an annual evaluation of the company’s operational planning and the cost-cutting initiatives, Amazon has decided to discontinue its wholesale distribution business in India. Bengaluru, Mysuru, and Hubli are the three cities in which the distribution vertical is managed and operated.

It purchases quickly consumable products from enterprises and then sells them in wholesale quantities directly to local shops such as kirana stores, pharmacies, and department stores in order to assist these establishments’ smaller business operations.

As a result of the slowdown in the economy, the multinational technology corporation with headquarters in the United States is now working on methods to reduce costs. Following the widespread firing of employees, the corporation made the decision to reduce costs across its global operations in response to the slowdown in economic activity.

As part of the process of conducting an annual evaluation of the company’s operational plans, Amazon has stated in one of their announcements to the media that the company will be closing down their wholesale e-commerce segment, which is known as Amazon Distribution. After the 29th of December in 2022, the service will no longer be available.

It is important to note that this is the third operation that the company has shut down in India. Earlier, the business made the announcement that it will be winding down its ed-tech venture, Amazon academy, as well as its food delivery service, Amazon Food. The food delivery service offered by Amazon was initially launched as a pilot project in the year 2020 and was based in Bengaluru.

As of the 29th of December, the service will no longer be available. In the meantime, the business has decided to stop operating its educational technology division, which is known as Amazon Academy, beginning in August of 2023. Amazon created the Amazon Academy, an online learning platform, for the purpose of assisting engineering students in their preparation for competitive exams such as the JEE.

After food service, Amazon India shuts down another business
After food service, Amazon India shuts down another business

In the meantime, the corporation recently terminated the employment of approximately 10,000 of its workers across the world. Andy Jassy, the CEO of the company, issued an official statement in which he confirmed the firings and announced that further employees will be let go in the coming months of 2023.

On the other hand, not all of the workers are terminated directly. The corporation has requested that its workers swap teams over the next two weeks or that they voluntarily resign by enrolling in the Voluntary Separation Program if they do not wish to continue working for the company (VSP)

The Voluntary Severance Program (VSP) will provide the workers with 22 weeks of Base Pay, in addition to one week of base wage for every six months of service (rounded to the nearest six months), and up to twenty weeks of paid severance.

In addition to this, the employees will be provided with health insurance coverage for a period of six months as part of the Insurance Benefit. policy or an equivalent insurance premium amount in lieu. However, if the employees are under performance improvement programs (PIP) they will not be able to sign up for VSP.

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