Amazon launched its education technology business during the Covid-19 pandemic, offering courses in math and science aimed at students preparing for the engineering entrance exams. This is one of her new ventures, and it is still small in scale.
“At Amazon, we think big, experiment and invest in new ideas to make our customers happy. We also continually evaluate the progress and potential of our products and services to deliver value to customers, and make regular adjustments based on these evaluations. After evaluation, we have made the decision to discontinue Amazon Academy,” the company said in a statement.
Amazon has said it will refund the full cost to those who are enrolled in the current academic group. The Seattle-based company entered the edtech space at a time when homegrown Byju’s and Unacademy, among others, were booming with the tailwind of the virus outbreak.
Amazon’s decision to close the academy comes at a time when the online retailer is facing challenges on a global level as the economic downturn and the receding pandemic have impacted its e-commerce business.
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The company is laying off more than 10,000 employees worldwide, hundreds have been affected in India.
This was reported by ET on November 16.
In September, research firm Bernstein published a report criticizing Amazon Indiastating that the company’s operations in the country were “mixed”, with ongoing losses despite a $6.5 billion investment.
While Amazon India’s marketplace, Amazon Seller Services, was able to cut losses by almost 23% to Rs 3,649 crore in FY 22, losses in the other two businesses – payments and logistics – increased.
The Bernstein report also says that Amazon is struggling to significantly expand its business in high-margin categories like fashion, beauty and personal care products, which are dominated by rivals Flipkart and Nikaarespectively.
Layoffs at the management level have also increased, which may indicate difficulties in achieving the desired scale, the report says. The Flipkart group dominated the recently concluded holiday sale with a 60% market share, according to a research firm report. redseer.