Bengaluru: Amazon India is set to relocate its corporate headquarters from its longtime base in the World Trade Centre (WTC) in northwest Bengaluru to a new location near the city’s airport, aiming to reduce operational costs, a media report stated. The company currently occupies 500,000 square feet of office space across 18 floors in the WTC, owned by Brigade Enterprises Ltd.
This integrated hub includes residential flats, a shopping mall, a five-star hotel, and a hospital. Notably, 300 of Amazon’s 5,000 employees at the WTC reside in the residential flats nearby, a report in the Live Mint stated.
The e-commerce giant’s new headquarters, located 20 km from the city center and a 15-minute drive from Bengaluru airport, is projected to cost Amazon a third of the Rs 250 per square foot rent it currently pays. The relocation is scheduled to begin in April 2025 and is expected to be completed by 2026. However, the lengthy commute which is estimated at 80 minutes during peak traffic has sparked concerns among staff.
A spokesperson for Amazon India mentioned that the company’s new facility is going to have a state-of-the-art campus designed to boost collaboration and employee experience.
Amazon India is undergoing significant leadership changes, with veteran Samir Kumar assuming the role of country manager in September, succeeding Manish Tiwary. In addition to overseeing India operations, Kumar is now responsible for Amazon’s consumer businesses in the Middle East, South Africa, and Turkey, the report further said.
Amazon's Finances Rise, But Cost-Cutting Continues
Financially, Amazon Seller Services reported a 14% rise in operating revenue in FY24, reaching Rs 25,406 crore, while net losses narrowed by 28% to Rs 3,469 crore. Although revenue growth outpaced the 3% increase seen in FY23, it still lagged behind the pandemic-era surge.
Meanwhile, Amazon’s logistics and payments divisions saw moderate revenue growth of 7-9% and slightly reduced losses, while its wholesale business experienced a slight decline.
Amid its cost-cutting measures, the report mentioned, the company has also undertaken global layoffs, with significant implications for India. In 2023, Amazon India laid off 500-1,000 employees in India as part of its global reduction of over 18,000 roles. Layoffs continued into 2024, affecting divisions like Audible, Prime Video, and Twitch.