Amazon India is set to shift its corporate headquarters from the World Trade Centre (WTC) in northwest Bengaluru to a new location closer to the city’s airport. According to reports, this move appears to be an effort to cut the cost of operation. Currently, the e-commerce firm occupies approximately 500,000 square feet of prime office space spread over 18 floors at WTC, a property owned by Brigade Enterprises Ltd.
Located 20 km from the city center of Bengaluru, and only a 15-minute drive from Kempegowda International Airport, the new headquarters will see Amazon drastically cut down on its rental spend. The company reportedly will pay only a third of what it pays at WTC, at a whopping Rs 250 per square foot. The relocation process is scheduled to begin by April 2025 and would be completed by 2026.
The WTC campus is an important center for real estate with a combination of residential flats, shopping mall, five-star hotel, and hospital. Approximately 300 out of 5,000 employees working for Amazon at WTC live in the adjacent residential flats
Concerns Related To Commutes
While Amazon India has assured an ultramodern facility that is supposed to encourage collaboration and foster employee well-being, the move has left the employees worried. The unit is located away from the city center, meaning some employees will have to travel a distance for about 80 minutes during peak hours.
As part of wider organizational changes at Amazon India, the company appointed Samir Kumar as country manager, replacing Manish Tiwary, back in September. Kumar now oversees not only Amazon’s India business but also its consumer businesses in the Middle East, South Africa, and Turkey.
Financial Performance And Ongoing Cost-Cutting
E-commerce company Amazon Seller Services reported an operating revenue of Rs 25,406 crore for FY24, a rise of 14% year-over-year, and net losses of Rs 3,469 crore, down 28%. That outpaced the modest 3% revenue growth of FY23 but left it beneath the levels hit during the pandemic-era boom.
Other divisions – logistics and payments- however were showing moderate revenue growth of 7-9% with slight losses reductions while its wholesale business had seen a minor decline.
Against this backdrop of financial changes, Amazon has undertaken global cutbacks including layoffs. In 2023 alone, the company reportedly let go 500-1,000 employees in India as it downsizes globally by more than 18,000 roles. Layoffs cut into 2024 as well, covering operations like Audible, Prime Video, and Twitch.
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