Amazon India is firing employees across various businesses and functions including Amazon Web Services (AWS), HR and support functions, people aware of the matter said.
The global tech giant is letting go of at least 500 employees in India and the process is ongoing.
The layoffs in India are a part of layoffs announced by CEO Andy Jassy in March, impacting nearly 9000 Amazon employees globally.
Some of the seller onboarding functions in some tier-II cities like Kochi and Lucknow have also been shut down as a part of the restructuring.
However, an Amazon official spokesperson declined to comment on the matter.
It is the second round of layoffs at Amazon in the last few months, following the rout of tech stocks globally, including Amazon's. The company had initially announced in January that over 18000 employees would be fired.
Additionally, Amazon has shut down multiple businesses in India late last year, including its edtech, food delivery and wholesale distribution business.
In April, CFO Brian Olsavsky told analysts the growth from its cloud business AWS would slow further as its business clients braced for recession and clamped down on spending.
The latest development comes as Amazon's e-commerce business growth is slowing down in India.
Its e-commerce business is still undergoing a transition as one of its biggest sellers Appario is transferring inventory to new sellers to comply with the rules in India.
Indian law does not permit a foreign-owned entity running an online marketplace and its group companies to own a stake in any seller on the platform or to have control over their inventory.
Amazon and Patni Group had entered into a joint venture to create Appario. It would be the second time a major seller firm, where Amazon held a stake, is having to stop operations in the face of regulatory changes in the country.
In 2019, Amazon had lowered its stake in Cloudtail parent Prione to 24% but then last year acquired 100% by buying out Catamaran Ventures' stake in it. It leads to Cloudtail having to withdraw from Amazon India. Catamaran Ventures is the investment arm of Infosys founder N R Narayana Murthy.