Amazon To Cut Jobs At Quidsi Family Technology Division

Amazon has taken the decision to axe hundreds of jobs at its Quidsi division, and will close down the business it acquired in 2011 for $545 million.

Until now Quidsi has been Amazon’s “mom-centric retail technology company” selling baby related products such as nappies, but it seems that Amazon has been trying (unsuccessfully) to turn around the fortunes of the unit for a while now.

The unit, based in New Jersey operates, and a number of other websites, all of which will apparently be closed down.

Job Losses

According to a notification sent to the New Jersey Department of Labor, Amazon is to close down Quidsi, and more than 260 employees at its headquarters and customer service operation will lose their jobs in June.

Some of those losing their jobs will be able to apply for positions at Amazon.

“We have worked extremely hard for the past seven years to get Quidsi to be profitable and unfortunately we have not been able to do so,” an Amazon spokeswoman was quoted by Reuters as saying in a statement.

And it seems that some elements of Quidsi will be absorbed into the e-commerice giant. For example Quidsi’s software development team will focus on building technology for the grocery delivery service AmazonFresh, the statement said.

Many believe that the move was a long time coming, and that Amazon is now ready to transfer Quidsi users into the Amazon ecosystem.

Indeed, some e-commerce analysts felt that Amazon probably always intended to eventually eliminate the company and its websites. Amazon’s renewed grocery push is therefore an ideal time to consolidate brands.

Food Focus

“They sucked out any knowledge that team had and now they’ll put it behind the Amazon brand and steamroll those categories,” Allen Adamson, founder of Brand Simple Consulting in New York was quoted by Bloomberg as saying.

Amazon of course is making a big push into the world of online groceries, as it feels that fresh food represents a large and fledgling market for online retailers.

For example in 2015 Amazon began trialling its grocery delivery service in the UK for the first time.

The AmazonFresh service however is still only available in certain areas in the UK.

Quiz: How much do you know about Amazon?

Tom Jowitt

Tom Jowitt is a leading British tech freelancer and long standing contributor to Silicon UK. He is also a bit of a Lord of the Rings nut...

Recent Posts

AWS re:Invent Conference Welcomes Back Crowds

Over 27,000 attendees and members of the press (including Silicon) attend Amazon Web Services worldwide…

7 hours ago

Head Of Car Giant Stellantis Issues Electric Vehicle Cost Warning

The car manufacturing industry cannot sustain the costs from government demands to shift to electric…

8 hours ago

SpaceX’s Elon Musk Warns Of Bankruptcy Risk Over Engine Issue

SpaceX CEO Elon Musk warns of “disaster” concerning production of Starship Raptor engine that puts…

10 hours ago

Twitter To Remove Photos Tweeted Without Permission

Privacy overstep? Personal photos and videos of private individuals tweeted without the consent of the…

11 hours ago

Facebook Cryptocurrency Executive David Marcus To Leave

Executive in charge of Meta's cryptocurrency efforts, confirms he is leaving after seven years at…

13 hours ago

NY AG Seeks Overseer For Amazon Worker Safety

New York's attorney general asks US judge to appoint someone who will oversee worker safety…

14 hours ago