While the move is expected to cut its rental costs to less than a third of current levels, I doubt that’s the only cost-cutting intention.
It would be practically impossible for most of its ~5000 employees to commute to office daily. Many will be compelled to resign. And when they do that, Amazon won’t have to shell out any severance pay.
From business perspective, Amazon does need to improve its financials. Even in its eleventh year of India operations (FY24), it posted a net loss of over $400 Mn on a revenue of ~$3 Bn.
Their only risk in this cost-cutting exercise is if Namma Metro suddenly picks up pace and their resignation calculations go for a toss. But Amazon knows the city too well now.
This post was originally shared by Yashraj Sharma on Linkedin.