Amazon Singapore Cuts Jobs, Shifts Focus to International Stores

Key facts

• Amazon Singapore will phase out its local fulfilment services, including Amazon Fresh.
• The move will result in layoffs affecting less than 10% of Amazon's 2,500-strong workforce in Singapore.
• Amazon.sg will prioritise expanding its selection from the US, Japan, and Germany stores.
• Local fulfilment and partnerships with third-party sellers will cease from July 6.
• Affected employees will receive severance payments and career transition services.
• Amazon remains committed to its cloud, retail, and technology functions in Singapore.
• Nearly 80% of local customers shopped for international products on Amazon.sg in 2025.

E-commerce Giant Reorients Singapore Operations

Amazon Singapore announced on Thursday, May 7, a significant strategic shift, signalling the discontinuation of its local fulfilment services, including the Amazon Fresh grocery delivery. This recalibration also entails ending collaborations with third-party sellers on the Amazon.sg platform. The decision, described by the company as "difficult," will lead to job losses impacting "less than 10 per cent" of its total workforce in Singapore, which numbers 2,500 individuals across its cloud, corporate, retail, and technology divisions. Amazon stated that the "vast majority" of roles remain unaffected by this change. The company is actively engaging with employees affected by these cuts, offering support to help them secure new positions within Amazon where feasible. For those who cannot find or do not pursue alternative roles, Amazon is providing comprehensive transition assistance, including severance packages and career counselling services.

Prioritising Global Selection Over Local Fulfilment

The core of Amazon Singapore's new strategy involves a dedicated expansion of its Amazon International Store selection, drawing heavily from its offerings in the United States, Japan, and Germany. This pivot is driven by customer behaviour, with nearly 80 per cent of local shoppers in 2025 favouring products from these international marketplaces. Beginning July 6, Amazon.sg will exclusively feature products from these three countries, phasing out local vendor selections and partnerships with grocery delivery services like Little Farms and Watsons. The company noted a consistent growth in demand for international goods since the platform's inception. Amazon aims to provide Singaporean customers with "tens of millions" of international products, promising fast and reliable delivery, with some items arriving in as little as two days. Prime members will continue to benefit from free delivery on these international orders, alongside other existing Prime benefits.

Impact on Workforce and Vendor Relations

The job cuts are concentrated within Amazon Singapore's Stores organisation, affecting a "small number of roles." The company has committed to redeploying affected employees to new positions within the firm whenever possible, a move supported by government agencies. The Economic Development Board, in conjunction with Workforce Singapore and NTUC's Employment & Employability Institute, is collaborating with Amazon to assist displaced workers, focusing on facilitating job placements. This coordinated effort underscores the broader economic implications of such corporate restructuring. Amazon is also extending support to its vendors and third-party sellers, exploring alternative avenues for them to continue serving the Singapore market. The company stated its intention to maintain a broad selection of everyday essentials available on the platform, even as it streamlines its local operations.

A Shift from Localised Beginnings

The strategic realignment marks a significant departure from Amazon.sg's initial launch in 2019. At its inception, the platform was designed as a localised storefront, offering Singaporean consumers features such as local currency and payment options, region-specific deals, and tailored Prime membership benefits. However, over time, Amazon observed a pronounced customer preference for the expansive international catalogue. This insight led to the decision to concentrate investment on what customers have demonstrably shown they value most: a wide array of global products delivered efficiently. Mr. Peter Li, Amazon Singapore's country manager, articulated this shift, stating, "We're seeing strong demand for products from international stores, and we’re responding by increasing our investment in what customers tell us they want most: great value selection from around the world with fast, reliable delivery."

Union Engagement and Future Commitments

The Singapore Manual and Mercantile Workers’ Union (SMMWU) was informed of the layoffs a day prior to the announcement. Mr. Andy Lim, SMMWU's secretary-general, acknowledged the company's efforts to streamline operations in response to market demands, which he noted would impact both operational and backend roles. While the union was assured that affected workers would receive a fair severance package, Mr. Lim suggested that a longer advance notice period would enable the union to provide more effective support to employees. Despite these operational adjustments, Amazon has reiterated its "deep commitment" to Singapore, highlighting ongoing investments across its retail, entertainment, devices, and Amazon Web Services (AWS) business lines. The Prime membership programme, including its subscription fees, will continue without alteration, underscoring the company's sustained presence in the market.

The bottom line

• Amazon Singapore is ceasing local fulfilment and grocery delivery services, including Amazon Fresh.
• The company is shifting its focus to expanding its international product selection from the US, Japan, and Germany on Amazon.sg.
• Less than 10% of Amazon's 2,500 employees in Singapore will be affected by job cuts.
• Affected employees will receive severance pay and career transition support.
• Amazon remains committed to its other business operations in Singapore, such as cloud computing and technology.
• The move reflects a strategic response to observed customer preferences for international goods over locally sourced items.