Amazon India is reportedly planning to move its headquarters from the famous World Trade Center to a new location near Bengaluru Airport. According to the Mint business daily, the move is aimed at reducing costs and is expected to start in April 2024 and be completed in 2026.
The company’s current 500,000-square-foot, 18-story office is part of the Brigade Gateway mixed-use development. However, the high rental costs in this prime location prompted Amazon to seek more cost-effective solutions.
New office location
The new office is approximately 20 kilometers away and is expected to reduce rental costs by up to two-thirds. While the move could lead to significant cost savings, it has caused concerns among employees due to increased commute times.
Amazon India has undergone significant changes recently. Samir KumarThe company veteran will take over the role of Country Manager in September 2023, succeeding Manish Tiwari. The company also faces challenges such as layoffs and slower growth.
Despite these challenges, Amazon India’s seller services business still grew operating income by 14% in fiscal 2024. However, growth has slowed compared to the pandemic period.
The headquarters relocation is a strategic move by Amazon India to optimize costs and improve operational efficiency. As the company continues to navigate a dynamic market, it will be interesting to see how this decision impacts its overall business performance.
