NEW DELHI: With Amazon planning to cut 11,000 jobs globally, the impact of the lay-off is not likely to be as severe in India. Sources told TNIE that some small businesses of Amazon in India are being evaluated and that some teams, which may have become redundant, will get ‘internal placements’.
The impact in India will be very small, a source told TNIE. “I don’t think we are in a bad place, to be honest. What is likely to happen is cutting off some flab here and there, that’s it. Something that nobody would have noticed in the usual course,” said the source quoted above. Amazon has around 100,000 employees in India.
The impact of the lay-offs is likely to be most severe in the US, which is also facing an economic slowdown. It is said that the job cut would impact the retail division, HR and also employees in technology roles. Amazon has 15.44 lakh employees globally (excluding contractors and temporary personnel), which means that it would be laying off less than 1% of its workforce.
Amazon India has several businesses – marketplace, data and payments, logistics and internet. Its largest business -- Amazon Seller Services, which houses the marketplace business – reported a 32.5% revenue growth to Rs 21,700 crore and posted a loss of Rs 3,649 crore, a decline of 23%.
Employee cost of Amazon Seller Services grew by 20.5% to Rs 2,193 crore in FY22 from Rs 1,820 crore in FY21. Amazon Pay India, which runs an online payment system in India, reported a 16% growth in revenue to Rs 2,052 crore in FY22. The company reported a net loss of Rs 1,741 crore during the year.
Amazon Transportation Services, which runs a shipping services firm, reported a 13% increase in its revenue in FY22 to Rs 4,581 crore even as its losses increased from Rs 69 crore to Rs 95 crore. Amazon Data Services reported Rs 3,567 crore in revenues and an annual profit of Rs 326.8 crore. Its data service is the only business that is in profit.
ALSO READ | Will robots replace humans at Amazon?
Cutting the flab
Amazon plans 11,000 job cuts globally
Ecomm giant has over 15.5 lakh employees globally
Nearly 100,000 are employed with Amazon in India
Amazon has four major businesses in India - marketplace, data and payments, logistics and internet
Amazon seller services, its biggest business in India, reported Rs 3,650 crore loss in FY22