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 Diapers.com, Soap.com 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

UK Watchdog Agrees ‘Oversight’ On Google’s Cookie Removal

Unhappy advertiser complaint sees CMA taking a key oversight role over Google’s planned removal of…

1 hour ago

Vodafone Chooses Samsung For 5G, Open RAN

Watch out Nokia, Ericsson? Samsung gains 5G foothold in Europe after Vodafone UK opts for…

3 hours ago

Passenger Bids $28 Million To Join Jeff Bezos On Blue Origin Debut

Blue Origin announces winner of live auction to join Jeff Bezos and his brother on…

4 hours ago

Trump ‘Subpoenaed Apple, Microsoft For Data On Rivals’

Apple changes rules for responding to government data requests after previous administration used subpoenas to…

1 day ago

China Regions Order Bitcoin Mining Shutdown

Two of China's biggest cryptocurrency mining regions order mining operations to cease operations, even as…

1 day ago

US Bills Target Tech Giants’ Unchecked Power

Five draft bills in US House of Representative build on last years' antitrust hearings with…

1 day ago