Amazon India is moving its corporate headquarters from the World Trade Centre in Bengaluru’s northwest to a new location near the city’s airport. The shift, part of a cost-cutting strategy, is expected to save the company ₹4.15 crore annually in rent. Currently, Amazon occupies 5 lakh square feet across 18 floors in a Brigade Enterprises-owned building, paying approximately ₹250 per square foot.
Relocation Details
- New Location: Situated on the outskirts of Bengaluru, the new office space costs nearly one-third of the current rent.
- Timeline: The move is set to begin in April 2025 and conclude by April 2026.
- Impact on Employees: Approximately 25% of apartments in the current complex are occupied by Amazon employees, who may face commuting challenges.
Financial Performance Highlights
- Amazon Transportation Services (ATS): Operating revenue grew by 7.6% in FY24 to ₹4,889 crore, with net losses decreasing by 6.9% to ₹80 crore.
- Amazon Wholesale: Operating revenue fell slightly to ₹3,577 crore, while net losses dropped by 44% to ₹342 crore due to reduced operations under stricter FDI rules.
Implications for Brigade Enterprises
Amazon’s departure raises concerns for Brigade Enterprises, a publicly traded real estate developer, about finding tenants for the soon-to-be-vacant office space. The move reflects Amazon’s broader efforts to optimize costs amid evolving market dynamics.
