Amazon has announced it will gradually cease its local fulfillment services in Singapore, including shutting down the Amazon Fresh grocery delivery business and ending partnerships with suppliers such as Little Farms and Watsons. This move will result in the layoff of less than 10% of the staff in its Singapore office, with the company assisting affected employees through internal transfers or severance packages.

Henry Lee, Managing Director of Amazon Singapore, stated that this adjustment stems from shifting consumer demand. By 2025, approximately 80% of local users on Amazon.sg are expected to purchase international goods from stores in the United States, Japan, and Germany, while demand for local products continues to decline. The company has decided to redirect its investments toward expanding the selection available in its international stores.

The affected services include Amazon Fresh and supplies from local partners, with the service officially ending on July 6. Amazon currently employs around 2,500 people in Singapore across retail, cloud services, and entertainment businesses, with the layoffs primarily impacting the retail division. Amazon emphasized that its commitment to Singapore remains "strong," and its Prime membership program and subscription fees will remain unchanged.

Analysts point out that Singapore's small land area and high density of supermarkets, where local brands like FairPrice and RedMart already dominate the fresh goods market, make it difficult for Amazon to establish a competitive edge in delivery costs or product differentiation. This retrenchment aligns with Amazon’s global strategy, which earlier this year included the elimination of 16,000 corporate roles and the closure of some U.S. fresh food stores, as the company focuses resources on cross-border e-commerce and AWS cloud services.