Amazon steps back from the grocery market in Singapore and focuses on cross-border operations instead.

      Amazon Fresh and its local fulfilment network will cease operations on 6 July, resulting in a reduction of a small number of roles in Singapore. However, AWS, retail, and Global Selling will continue, as the company believes Singaporean shoppers prefer products from Amazon’s US, Japanese, and German catalogues over local replenishment.

      On Wednesday, Amazon confirmed that it is shutting down Amazon Fresh in Singapore and discontinuing its local fulfilment operations. The grocery service, along with partnerships with Little Farms and AS Watson, will conclude on 6 July. A "small number" of roles in Singapore will be eliminated as part of this process, although the company has not disclosed the specific number. Affected employees will be given the option to transfer internally where possible, and those who cannot will receive severance packages and career-transition support.

      Peter Li, Amazon Singapore's country manager, stated that the decision was based on demand trends, indicating that customers primarily prefer products from Amazon’s US, Japanese, and German stores instead of locally stocked goods.

      Amazon currently employs around 2,500 individuals in Singapore across various sectors, including retail, Global Selling, entertainment, devices, and AWS, all of which will remain unaffected. The company maintains that its commitment to the region is "deep," a sentiment that contrasts with the closure of a key service.

      The failure of Amazon Fresh to succeed in Singapore can be attributed to the country's unique characteristics. Singapore is small and densely populated, already well-served by local grocery chains such as FairPrice, RedMart, and Sheng Siong, along with numerous last-mile delivery services.

      Amazon initially ventured into the grocery sector in 2017 through Prime Now, later rebranding it as Amazon Fresh while forming local partnerships, including with AS Watson’s Cold Storage and Little Farms for organic and specialty items. However, the competitive landscape posed challenges. Establishing a grocery service in a location where supermarkets are readily accessible and just a short distance away meant Amazon had to either subsidize delivery costs indefinitely or compete with a catalogue that lacked differentiation.

      By closing Amazon Fresh in Singapore, Amazon can redirect its investment towards areas that its data indicates are truly in demand, specifically cross-border shipping of products that are difficult for local retailers to provide.

      This logic aligns with trends observed globally, where Amazon has made similar decisions in other markets. The company shuttered its Try Before You Buy clothing service worldwide in 2023, sold Amazon Care in 2022, and recently announced the closure of its physical Amazon Go and Amazon Fresh stores in the US, streamlining its grocery operations to focus on Whole Foods.

      The closure in Singapore coincides with a larger context, as the company’s decision comes in a year characterized by significant reductions in workforce. Earlier in the year, Amazon announced a record 16,000 corporate job cuts across various departments. Other tech companies have followed suit, with Meta planning to restructure 8,000 positions and Atlassian announcing a reduction of 1,600 jobs.

      Amazon executives have framed these global job cuts as part of a strategy for a more streamlined organizational structure rather than solely as a benefit of AI-driven productivity, although this distinction has not eased the concerns of those impacted. The wind-down in Singapore is a localized manifestation of the same evaluation: identifying where Amazon can direct its investments towards actual demand.

      As for what remains in Singapore, AWS remains a key focus. Amazon has pledged S$12 billion (approximately US$9 billion) to enhance cloud infrastructure in the country in 2024, and the AWS Asia-Pacific headquarters was inaugurated at IOI Central Boulevard last year. The Global Selling division, which aids Singaporean exporters in listing their products on Amazon’s international marketplaces, continues to thrive alongside Amazon’s investments in AI infrastructure.

      For consumers, the practical change is limited. Starting in July, users of Amazon Fresh will need to switch to FairPrice, RedMart, or Cold Storage apps. Customers primarily utilizing Amazon.sg for cross-border products should not experience any disruptions, and Amazon plans to increase selections from its US, Japanese, and German stores in the coming months.

      For employees impacted by the closure, the immediate concern will be the availability of internal transfer options, while the broader tech job market in Singapore remains a longer-term consideration, having added 55,000 jobs in 2025, most of which went to non-residents.