Amazon decides to shut distribution services as India under Modi lost attraction for global businesses

New Delhi, November 28 (KMS): In what appears to be a hostile environment for global marketing companies in India under Modi, after internet service providing companies, now tech and e-commerce giant Amazon has decided to also shut its distribution services after food delivery and education in India.

Amazon Distribution operates mainly in Bengaluru, Hubli, and Mysore and employs roughly 50 people. The distribution unit sources fast moving consumer goods from companies and distributes them to retailers.

The tech behemoth also pulled the plug on its ed-tech service, Amazon Academy, last week. Amazon Academy was launched by the company during the COVID-19 lockdown when ed-tech companies like BYJU’s, Unacademy, Vedantu, and others witnessed a boom.

The company was summoned by the Labour Ministry last week for a hearing regarding its Voluntary Separation Program, a plan under which Indian employees were urged to exit from the company in lieu of certain monetary benefits.

The deputy chief commissioner at the Labour Ministry, A Anjanappa, summoned Amazon’s senior public policy manager, Smitha Sharma, along with the employee association NITES for a hearing.

In the hearing, the company claimed that the exits by employees were voluntary and no undue pressure was put on employees to resign. Employee representatives could not attend the hearing and requested a postponement. The meeting will reconvene in two to three weeks’ time.

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