Amazon to shut down speedy brick-and-mortar delivery service
Amazon is shutting down a service that offers same-day delivery from mall and brick-and-mortar retailers, CNBC has learned.
The company has stopped any new development of the service, called Amazon Today, and will begin to wind it down, according to two people with knowledge of the matter. The people asked not to be named because they were not authorized to speak to the press.
The bulk of the program will be shut down by Dec. 2, the people said. Select retail partners will be able to continue fulfilling orders with Amazon Today through Jan. 24, 2025, Amazon told CNBC.
A small amount of employees will be laid off and provided with severance, while others will be transitioned to other positions within Amazon, the company said.
Employees who work on Amazon Today learned the news in a meeting on Monday, where some staffers were informed they would be laid off, the people said. Roughly 300 employees were working on Amazon Today, the people said. Amazon disputed the figure, saying there were approximately 175 employees in the unit.
Since 2022, Amazon CEO Andy Jassy has been on a campaign to cut costs across the company in order to meet rapidly changing macro conditions. Beginning in 2022 and extending through 2024, Amazon initiated the largest layoffs in its history, cutting more than 27,000 jobs. Jassy has taken a harder line on the company's unproven, costlier bets than his predecessor, Amazon founder Jeff Bezos. Jassy has axed several projects, including a telehealth service, video-calling device for kids and a roving Treasure Truck.
