KUALA LUMPUR - Amazon Singapore will phase out its local fulfilment operations, including its Amazon Fresh grocery delivery service, as part of a strategic shift towards expanding international offerings on Amazon.sg.

The company also confirmed it will stop working with third-party sellers on its Singapore platform, as stated by CNA.

Amazon Singapore said the move would result in layoffs affecting fewer than 10 per cent of its workforce in the republic.

The company currently employs around 2,500 staff across its cloud, retail, technology and corporate operations in Singapore.

It said the vast majority of roles would remain unaffected.

Amazon added that it is working closely with affected employees to explore redeployment opportunities within the company where possible.

“For those who are unable to find a new role or choose not to pursue one, we are offering transition support, including severance payments and career transition services,” the company said. 

The company said it would prioritise expanding selections available through its Amazon International Store platform.

It cited growing customer demand for products sourced from its United States, Japan and Germany stores.

Amazon Singapore said nearly 80 per cent of local customers purchased products from its international offerings in 2025.

The company added that demand for those products had continued to grow steadily since launch.

From July 6, Amazon.sg will focus primarily on selections from its US, Japan and Germany stores.

Describing the move as a “difficult decision”, Amazon Singapore confirmed it would discontinue products supplied by local vendors, third-party sellers and Amazon Fresh from the same date.

The decision will also end its partnerships with grocery retailer Little Farms and pharmacy chain Watsons on the platform.

“We are supporting our vendors and sellers through this transition. We will continue to offer a wide selection of everyday essentials, including across health and personal care, apparel, home, kitchen, and more.

“We’re working to transition our vendors and sellers to alternative ways to continue to serve Singapore customers where possible,” the company said.

Amazon stressed that it remains deeply committed” to Singapore despite the operational changes

The company also said its Prime membership programme would continue unchanged, including existing subscription fees.

Singapore’s Economic Development Board said it is coordinating with Amazon, Workforce Singapore and NTUC’s Employment and Employability Institute to support affected employees.

The agencies are expected to assist workers through job placement and employment transition initiatives.

Little Farms and Watsons have yet to comment on the end of their partnerships with Amazon Singapore.