Amazon India to relocate Bengaluru headquarters amid cost-cutting measures

Amazon India is set to shift its corporate headquarters from the World Trade Centre (WTC) in Bengaluru to a new location near the city’s airport as part of a strategic cost-reduction effort, according to reports.

The move involves vacating approximately 500,000 square feet of office space spread across 18 floors in the WTC, a property owned by Brigade Enterprises Ltd. The company’s new office, located about 20 kilometers from the current site in Malleswaram, will reportedly reduce Amazon’s rental costs significantly. The relocation is expected to begin in April 2024.

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Amazon’s current office is part of Brigade Gateway, Bengaluru’s first integrated complex, which includes residential apartments, a shopping mall, a five-star hotel, and a hospital. Nearly 300 Amazon employees currently occupy a quarter of the residential units in the complex.

The new office, situated near the Kempegowda International Airport, is projected to cost Amazon about a third of the current Rs 250 per square foot rent. However, the location lacks metro connectivity, and commuting through Bengaluru’s notorious traffic could take over 80 minutes during peak hours.

The move is expected to impact the local real estate market. Brigade Enterprises might face difficulties in finding tenants for the vacated space, potentially affecting nearby residential rental demand. Conversely, the shift could boost the airport corridor’s emergence as a commercial hub, with companies like Infosys, Boeing, and Foxconn already investing in the area.