TLDRs
- Amazon cuts under 10% Singapore staff amid retail restructuring shift.
- Company ends local fulfilment to focus on international product selection.
- Majority of employees retained with internal roles or severance options.
- Strategy reflects rising competition from Shopee and Lazada in Singapore.
Amazon is set to reduce its workforce in Singapore by fewer than 10%, affecting a portion of its roughly 2,500 employees in the country.
The decision comes as the company winds down its Amazon Fresh local fulfilment services and seller operations, with changes taking effect from July 6. The restructuring signals a clear pivot away from locally driven retail logistics toward a more globally integrated ecommerce model centered on its International Store.
Despite the job cuts, Amazon emphasized that the majority of its Singapore workforce will remain in place. Employees impacted by the restructuring will have the option to apply for other internal roles within the company. Alternatively, they may choose severance packages alongside career transition support as Amazon seeks to soften the impact of the shift.
Shift toward global selection
The strategic realignment reflects changing consumer behavior in Singapore. According to Amazon, nearly 80% of customers in the country in 2025 were already purchasing from its international product catalogue. This strong preference for cross-border goods has encouraged the company to double down on its global selection strategy rather than maintaining localized retail operations.
As part of this transition, Amazon plans to expand product availability from key international markets, including the United States, Japan, and Germany. This move is expected to broaden choice for Singapore customers while simplifying Amazon’s operational footprint in the region.
Competitive pressure rises
Amazon’s decision also highlights the increasingly competitive nature of Singapore’s ecommerce sector. Regional giants such as Shopee and Lazada have built strong ecosystems tailored specifically to Southeast Asian consumers, making it difficult for global players to dominate local fulfillment services.
Competitors have also leaned heavily into engagement-driven retail formats. Livestream shopping, particularly through ShopeeLive, has become a major sales driver, reportedly boosting seller performance significantly. These innovations have reshaped consumer expectations, placing pressure on Amazon to rethink its local-first strategies.
Cloud business remains strong
While retail operations are being scaled back, Amazon Web Services (AWS) continues to be a major pillar of the company’s presence in Singapore. AWS remains central to Amazon’s long-term investment strategy in the region, supporting enterprise demand for cloud infrastructure and digital services.
Amazon previously invested more than S$2 billion (approximately US$1.5 billion) across its retail and cloud operations in Singapore in 2023. That investment was linked to more than 10,000 indirect jobs, underscoring the company’s broader economic footprint despite the restructuring of its retail arm.
Strategic retail repositioning
The changes are also expected to reshape Amazon.sg’s “Fresh & Fast” ecosystem, which previously included partnerships with local retailers such as grocery and health-and-beauty chains. While Amazon has not confirmed any termination of these partnerships, the shift away from local fulfilment suggests a reduced emphasis on domestically sourced inventory.
Ultimately, the move signals Amazon’s intent to streamline operations in a market where localized ecommerce competition has intensified significantly. By focusing on international selection and leveraging its global supply chain, the company appears to be prioritizing scale and efficiency over localized retail complexity in Singapore.
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