Amazon to cut Singapore fulfillment roles as it shifts focus to international shipments

Amazon will phase out its local fulfilment operations in Singapore, including Amazon Fresh and grocery partnerships, as the e-commerce giant pivots towards expanding international shipments in response to changing customer demand.

The move will result in a “small number” of job cuts within Amazon Singapore’s Stores organisation, although the company did not disclose exact figures. According to local media reports, the layoffs are expected to affect fewer than 10 per cent of Amazon’s 2,500 employees in Singapore.

In a statement on Thursday, Amazon said it is working closely with impacted employees and exploring opportunities to redeploy them internally wherever possible. Employees who are unable to secure alternative roles will receive severance packages and career transition support.

“We’re working closely with affected employees, including helping them find new roles within Amazon wherever possible,” the company said. “For those who are unable to find a new role or choose not to pursue one, we are offering transition support including severance payments and career transition services.”

The restructuring comes as Amazon doubles down on its International Store strategy, which gives Singapore customers access to products from Amazon’s US, Japan, and Germany marketplaces. The company said international products now account for the majority of units sold on Amazon.sg.

Peter Li, Country Manager for Amazon Singapore, said customer preferences have increasingly shifted towards global product selection and faster international delivery.

“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,” Li said.

Amazon said Singapore customers will continue to have access to millions of products, local payment options, Prime benefits, and delivery services, with eligible international orders arriving in as little as two days. The company will also continue offering selected everyday essentials across categories such as health and personal care, apparel, home, and kitchen products.

The transition marks a significant shift for Amazon.sg, which launched in 2019 with a focus on building a localised e-commerce ecosystem that included locally sourced grocery and fresh delivery services.

Industry observers say the move reflects broader changes in consumer behaviour, with cross-border e-commerce gaining momentum as shoppers seek wider product variety and competitive pricing from overseas marketplaces.

Meanwhile, the Singapore Manual and Mercantile Workers’ Union (SMMWU) said Amazon Asia-Pacific had informed the union about the retrenchment exercise one day in advance, despite the company being non-unionised. Reports also indicated that affected employees have been given a two-month notice period.

The Taskforce for Responsible Retrenchment and Employment Facilitation said it is monitoring the situation, while Singapore’s Economic Development Board confirmed it is working with Amazon, Workforce Singapore, and NTUC’s Employment and Employability Institute (e2i) to support displaced workers.

Despite the operational changes, Amazon reiterated its long-term commitment to Singapore, highlighting continued investments across its retail, Global Selling, entertainment, devices, and AWS businesses.