Amazon (AMZN.US) to close its same-day delivery service for physical stores

Amazon (AMZN.US) is reportedly shutting down a same-day delivery service for shopping centers and physical retailers.The company has stopped developing new features for the service, known as Amazon Today, and will begin to phase it out, according to two people familiar with the matter.Most of the service will be discontinued by December 2, the people said. Amazon said some retail partners will be able to continue to fulfill orders through Amazon Today until January 24, 2025.The company said some employees will be laid off and given severance, while others will be relocated to other positions within Amazon.The closure of Amazon Today is the latest example of Amazon's broad cost-cutting.Amazon CEO Andy Jassy has been cutting costs across the company since 2022, as the macro environment has rapidly changed. Since 2022, Amazon has launched its largest round of layoffs in history, cutting more than 27,000 jobs. Jassy has axed several projects, including remote health care, a child video calling device and the Treasure Truck service.Amazon Today, which launched in 2022, allowed retailers that sell on Amazon to offer fast delivery from select stores and shopping centers in certain cities. Flex drivers, who are contracted by Amazon, use their own vehicles to pick up packages and deliver them to customers' doorsteps within a few hours of receiving the order.Amazon said it is working with the retailers it has signed up to ensure a smooth transition. The company added that it will continue to prioritize and invest in fast delivery.The decision to shut down Amazon Today was unexpected, as Amazon was then recruiting other retailers, the people said. The company also pitched the service to more retailers at a meeting last week.