Amazon India is set to relocate its corporate headquarters from the World Trade Centre (WTC) in northwest Bengaluru to a new location near Kempegowda International Airport, a strategic move aimed at significantly cutting costs. The move is expected to reduce the rent cost of the Amazon by Rs 4.15 crores to Rs 4.30 crores.
The relocation will start in April 2025
The relocation, planned to start in April 2025 and conclude by April 2026, is expected to reduce Amazon’s rent expenses by almost two-thirds, Currently, Amazon occupies nearly 500,000 square feet across 18 of the 30 floors at WTC, a property owned by Brigade Enterprises, where it reportedly pays Rs 250 per square foot. The new office space near the airport, managed by Sattva, will come at a fraction of the cost, allowing the company to save an estimated Rs 4.15 crore in annual rental expenses.
5300 employees work in current office
Amazon’s current office at WTC has been a prominent corporate base in India since its inception, housing about 5,300 employees across its extensive office space. The WTC building is a major landmark in the city and a hub for Amazon’s India operations. Approximately 25% of the nearby residential apartments are occupied by Amazon employees, many of whom chose to live close to work. As a result, the relocation could bring substantial logistical adjustments, as employees may have to commute from different parts of Bengaluru to the new site near the airport.
Cost cutting is the main aim behind this
This decision also presents challenges for Brigade Enterprises, as the real estate company will need to fill the large office space Amazon will vacate. With global and local economic pressures, many companies have been cautious in leasing or expanding office space, which may affect Brigade’s ability to find a comparable tenant.
The relocation reflects a larger trend among global corporations and Indian startups, both of which are adopting cost-reduction strategies to navigate an uncertain economic landscape. Over the past two years, many companies have undergone multiple rounds of layoffs, reduced physical office space, and consolidated operations. For instance, Indian startups like Kuku FM, Beepkart, and 1% Club have recently announced layoffs to manage expenses, with Beepkart also halving its store count as part of its cost-saving initiatives. In the technology sector, Nasdaq-listed SaaS company Freshworks announced earlier this month that it would cut 13% of its workforce, impacting 660 employees as part of a broader restructuring plan aimed at increasing operational efficiency.
Amazon India’s planned relocation is yet another example of companies re-evaluating their operational footprint to drive cost efficiencies while remaining competitive.
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