365Telugu.com online news, November 19th,2024: Amazon India is shifting its corporate headquarters from the World Trade Centre in Bengaluru to a new office space near Kempegowda International Airport, marking a significant cost-saving move. The relocation is part of the company’s broader strategy to reduce expenses and is expected to save Amazon ₹4.15 crore every year in rent.
Current Location: Amazon currently occupies 5 lakh square feet across 18 floors in a Brigade Enterprises-owned building at the World Trade Centre in Bengaluru’s northwest, paying around ₹250 per square foot in rent.
New Office Details: The new office, located on the outskirts of Bengaluru, is expected to cost nearly one-third of the rent Amazon currently pays. The company plans to begin the move in April 2025, with the transition expected to be completed by April 2026.
Impact on Employees: Around 25% of the residential units in the current office complex are occupied by Amazon employees. The relocation may present commuting challenges for these employees due to the new office’s location farther from the city center.
Amazon’s Financial Performance:
Amazon Transportation Services (ATS): Operating revenue grew by 7.6% in FY24, reaching ₹4,889 crore, while net losses reduced by 6.9%, totaling ₹80 crore.
Amazon Wholesale: The division saw a slight dip in operating revenue to ₹3,577 crore, but net losses shrank by 44%, down to ₹342 crore, primarily due to a reduction in operations in response to stricter FDI regulations.
Impact on Brigade Enterprises: Brigade Enterprises, the real estate developer that owns the World Trade Centre building, faces uncertainty as Amazon’s departure will leave a large portion of the office space vacant. The company will need to find new tenants to fill the gap, which could be challenging in a fluctuating real estate market.
This relocation is part of Amazon’s ongoing efforts to streamline operations and optimize costs amid changing market conditions.