Due to Cost-Cutting Measures, Amazon India will Relocate its Corporate Headquarters to Bengaluru

Nitin Konde, Varun Bhardwaj

Nov 19, 2024 — 2 min read

Amazon India Relocates HQ to Bengaluru in Cost-Saving Move

In an effort to save money, Amazon India is relocating its headquarters from the World Trade Centre in Bengaluru's northwest to a site near the airport, according to various media reports. In a 30-story building owned by Brigade Enterprises, the e-commerce and cloud computing giant currently utilises half a million square feet of office space on 18 floors. The Bengaluru airport is 15 minutes away by car from Amazon's new headquarters. A third of the INR 250 per square foot rent that the corporation paid for the WTC office is probably going to be lost. According to the reports, the relocation would start in April and be finished by 2026.

Current Office’s Dynamics

Amazon's present location is a part of Brigade Gateway, the first integrated complex in the city, which also includes a hospital, a five-star hotel, 1,200 residential apartments, and a shopping centre. The report suggests that the 5,000 personnel of the World Trade Centre are encouraged to reside in the vicinity. Amazon employs 300 people, and they occupy one-fourth of the apartments.

A spokesperson told the media that the company is thrilled to be relocating to a new campus, a cutting-edge building intended to promote improved cooperation and provide an unmatched employee experience.

Nevertheless, the staff has been dissatisfied with the company's new office, which is situated 20 kilometres away, as a result of the prolonged commute time, which is approximately 80 minutes during peak traffic.

Recent Developments in Amazon India

There is currently a top leadership turnover in Amazon India. Manish Tiwary resigned as India's country manager in August, and Samir Kumar, a seasoned member of the company, took over in September. Kumar will oversee Amazon's consumer businesses in the Middle East, South Africa, and Turkey in addition to the Indian market.

The Indian marketplace division of the e-commerce giant, Amazon Seller Services, announced on November 11 that its operational revenue for FY24 increased by 14% to INR 25,406 crore, while its net loss decreased by 28% to INR 3,469 crore. Revenue growth was slower than the growth rates observed during the pandemic period, although it still exceeded the 3% increase in FY23.

While Amazon India's wholesale division, which sells goods and services in bulk to retailers and distributors, saw a slight dip, the company's logistics and payments divisions reported a 7-9% increase in operational income and somewhat reduced losses for the fiscal year that ended in March 2024. As part of its global employment reduction announced in 2023, the retailer let go of 500–1,000 workers in India. Amazon announced that it would lay off more than 18,000 workers in January 2023. In 2024, the firm laid off hundreds of workers across several sectors, including Twitch, Prime Video, and Audible.