American multinational technology company, Amazon, has reportedly shut down its wholesale distribution business in India.
The online retail giant is said to have shifted its focus to core retail business operations amid tightening and rationalisations across the global tech industry.
Amazon distribution, her wholesale e-commerce website available to small stores in Bengaluru, Mysore and Hubli, was initially designed to help neighbourhood stores, pharmacies and department stores in India secure inventory.
A statement, however, issued on Monday by a spokesperson from the global business said: “We don’t take these decisions lightly. We are discontinuing this program in a phased manner to take care of current customers and partners.”
Naija News understands that the shutdown will result in the layoffs of hundreds of workers in India.
The latest development came a week after Amazon announced the shutdown of its edtech business ‘Amazon Academy’, shortly after its food delivery business in Bangalore shut down.
Tech companies have been re-orienting their business operations globally, including India, which has seen companies such as Meta and Twitter fire people.
Sources at Amazon India told reporters that the company has so far “not laid off” employees within the country, even though its has announced a voluntary separation programme for certain employees.”