Amazon India is set to relocate its corporate headquarters from Bengaluru’s World Trade Centre (WTC) to a new location near the city’s airport. The move, expected to start in April 2025 and conclude by April 2026, is part of a broader cost-cutting strategy that could save the e-commerce giant nearly ₹8 crore annually in rent.

Significant Savings on Rent

Amazon India occupies nearly 5 lakh square feet across 18 floors in the WTC building, owned by Brigade Enterprises. With a monthly rental rate of ₹250 per square foot, the company’s operational costs are substantial. According to sources, the new location on Bengaluru’s outskirts is expected to reduce rental expenses by nearly two-thirds.

The relocation could create challenges for Brigade Enterprises, which will need new tenants to fill the soon-to-be-vacant space. Currently, about 25% of the apartments in the WTC complex are occupied by Amazon employees, many of whom chose to live nearby due to the convenience of the location.

Operational Insights from Amazon India

Amazon India has been optimising its operations across multiple verticals. The logistics and payments divisions reported operating revenue growth of 7–9% for FY 2024, alongside moderately reduced losses. However, The wholesale division saw a slight revenue dip due to stricter foreign direct investment (FDI) regulations.

The company’s transportation arm, Amazon Transportation Services (ATS), achieved a 7.6% increase in revenue, reaching ₹4,889 crore in FY 2024, compared to ₹4,543 crore the previous year. Net losses for ATS also dropped by 6.9%, from ₹86 crore to ₹80 crore during the same period.

Amazon Wholesale’s Adjustments

The wholesale division experienced a slight revenue decline, falling from ₹3,600 crore in FY 2023 to ₹3,577 crore in FY 2024. Despite this, the unit significantly reduced its losses, reporting a 44% year-over-year decrease to ₹342 crore. The division has been scaling down operations in response to stricter FDI rules governing e-commerce businesses operated by foreign entities.

Impact on Employees and the Real Estate Market

While Amazon’s cost-cutting measures reflect financial prudence, the relocation poses logistical challenges for the 5,000 employees working in its WTC office. Many of these employees may need to consider relocating closer to the new headquarters, potentially impacting their work-life balance and the local housing market near the WTC complex.

For Brigade Enterprises, filling the prime office space left vacant by Amazon may require more work in a competitive real estate market. The departure of such a major tenant could lead to a temporary decline in rental income.

Outlook for Amazon India

Amazon India’s decision to relocate underscores its commitment to cost efficiency amid evolving business needs and regulatory landscapes. With steady growth in logistics and payments revenue, alongside reduced losses in key divisions, the company appears well-positioned to navigate the challenges of the Indian market while maintaining its leadership in e-commerce and related services.