Amazon would lay off hundreds of employees and scale back some of its operations in India

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The reversal in India highlights Amazon’s challenges in one of the world’s fastest-growing e-commerce marketplaces, where it faces competition from Walmart Inc.’s Flipkart and homegrown conglomerates Reliance Industries Ltd. and Tata Group in addition to regulatory pressure.

The business previously announced that it is discontinuing meal delivery and a service that brought packaged consumer goods to the doorsteps of small businesses. In response to slowing growth in numerous aspects of Amazon’s business, CEO Andy Jassy is cutting costs and hiring across the globe.

Despite decades of billion-dollar investments in India ranging from payments to grocery delivery, the corporation hasn’t been able to match the level of market control it has in the US.

Several beta-testing projects are likely to be put on hold, according to a source who asked to remain anonymous. Additionally, Amazon has disclosed that its Amazon Academy learning platform, which provides online test preparation materials for students vying for admission to India’s engineering and medical schools, will close down in the upcoming months.

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According to people familiar with the situation, Amazon wants to reduce around 10,000 positions globally, which would be its biggest-ever staff drop. For the holiday quarter, it has forecast the smallest sales growth ever. Jassy has also frozen hiring for several corporate positions and terminated numerous smaller and experimental ventures.

In India, Amazon introduced Amazon Food in 2020, the food delivery service it is now discontinuing. It serves meals from restaurants and other suppliers, including paratha, stuffed bread, and hamburgers and fries from McDonald’s. However, Amazon’s business-customer division will continue to supply products like food and medical supplies to small merchants and bulk buyers, but it will no longer provide door delivery of packaged consumer goods.

“We are discontinuing these programs in a phased manner to take care of current customers and partners,” the company said in an emailed statement. “We remain committed to India and will continue to invest across those areas where we can bring value to our customers.”

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