Amazon is set to end its same-day delivery service for items from mall and brick-and-mortar retailers, according to a report.
CNBC reported that the company has also halted new developments for its Amazon Today service and is planning to wind it down. Citing people in knowledge of the matter, the report said that the majority of the program will be shut down by Dec. 2. However, some retail partners will continue fulfilling orders made through Amazon Today until Jan. 24, 2025.
Due to this, a small number of its employees will be laid off, but they will be provided with severance pay. Others will be moving to other positions within the e-commerce giant.
During a meeting on Monday, employees working on Amazon Today were informed that some of them would be laid off, according to the report. While sources indicated that around 300 people were part of the Amazon Today team, Amazon contested this number, stating there were about 175 employees in that unit.
This closure is part of Amazon’s broader strategy to reduce costs, which has been ongoing since 2022 in response to changing economic conditions. Layoffs have continued into 2024, with 27,000 jobs cut to date, marking the largest reductions in the company’s history.
Compared to Jeff Bezos, Amazon CEO Andy Jassy has opted for a tougher approach to expensive projects and discontinued several initiatives, including a video-calling device for kids, telehealth service, and a roving Treasure truck. The same-day delivery service used Flex drivers, who delivered packages from local warehouses within hours of ordering.
This unit was part of Amazon’s strategy to speed up product delivery to customers. The company aimed to enhance sales by expanding its same-day delivery capabilities.
Earlier this month, Amazon announced its foray into live news coverage with plans to host a special election night event anchored by industry veteran Brian Williams.
This move represented a significant expansion for Amazon, which has primarily focused on on-demand content through its Prime Video platform. Scheduled to air Nov. 5, “Election Night Live with Brian Williams” will provide Amazon customers with real-time election results and analysis.
Experts in news and politics will offer exclusive insights and analysis around real-time developments.
