Amazon steps back from the Singapore grocery market, focusing more on cross-border operations instead.

      Amazon Fresh and its local fulfilment network will cease operations on 6 July, resulting in the elimination of a small number of roles in Singapore. However, AWS, retail, and Global Selling will continue, as the expectation is that Singaporean consumers prefer products from the US, Japan, and Germany rather than locally obtained restocking.

      On Wednesday, Amazon confirmed the closure of Amazon Fresh in Singapore along with its local fulfilment services. The grocery service, along with partnerships with Little Farms and AS Watson, will conclude on 6 July. A “small number” of jobs in Singapore will be impacted as part of this process, though the company has not disclosed the specific number. Those affected will be offered available internal transfers, and severance packages along with career-transition services if such positions are not available.

      Peter Li, Amazon Singapore's country manager, noted in the announcement that the changes were based on demand trends, as the company determined that customers in Singapore primarily desire products from its US, Japanese, and German stores rather than local stock.

      Amazon employs approximately 2,500 people in various sectors, including retail, Global Selling, entertainment, devices, and AWS in Singapore. None of these sectors will be impacted by the changes. The company emphasized its "deep" commitment to Singapore, a statement that contrasts with the closure of a key service.

      The lack of success for Amazon Fresh is attributed to Singapore's small, densely populated environment where supermarkets are readily accessible. Amazon entered the grocery market in 2017 via Prime Now, later renaming the service as Amazon Fresh and establishing local partnerships, including those with AS Watson’s Cold Storage and Little Farms for organic produce.

      The competitive landscape posed challenges, as managing grocery deliveries in a city with supermarkets just a minute and a half away from many residences would require significant perpetual subsidies or competition based on a catalogue that Amazon struggled to distinguish.

      By closing Amazon Fresh, the company can refocus its investments on areas that its data indicates generate actual demand: cross-border shipments of products that are not readily available from local retailers. This rationale aligns with the company's previous decisions elsewhere, including the global shutdown of its Try Before You Buy clothing service in 2023, selling Amazon Care in 2022, and the recent announcement of the winding down of its physical Amazon Go and Amazon Fresh stores in the US, consolidating its grocery presence to Whole Foods.

      The decision in Singapore fits this broader trend: maintaining retail operations where there is either scale or differentiation and exiting areas lacking either.

      While the job reductions in Singapore may seem modest in volume, they occur in a year marked by significant changes in Amazon's workforce. The 16,000 corporate layoffs announced in January were the largest in the company’s history, affecting roles across retail, devices, and AWS support. Other tech companies, such as Meta and Atlassian, have also announced considerable workforce reductions.

      Amazon executives have characterized the global cuts as part of a restructuring towards a flatter organizational model rather than as a direct result of AI-driven productivity improvements, though this distinction has not alleviated concerns among impacted teams. The situation in Singapore serves as a localized example of this strategic reevaluation: where can Amazon allocate capital to meet actual demand?

      In Singapore, AWS remains a key focus. The company has dedicated S$12 billion (approximately US$9 billion) to enhance cloud infrastructure in 2024, and it opened the AWS Asia-Pacific headquarters at IOI Central Boulevard last year. Additionally, the Global Selling business, which aids Singaporean exporters in listing on Amazon's international platforms, continues to expand in tandem with Amazon's AI infrastructure investments.

      For customers, the immediate change will require Amazon Fresh users to transition to apps like FairPrice, RedMart, or Cold Storage starting in July. Those primarily using Amazon.sg for cross-border shopping should experience no interruptions, and Amazon has indicated that they can expect a broader selection from US, Japanese, and German stores in the upcoming months.

      Affected employees will prioritize internal transfers, while the wider Singapore tech job market, which added 55,000 positions in 2025 (with most going to non-residents), poses a longer-term concern.