Amazon India to Relocate Corporate Headquarters Near Bengaluru Airport Amid Cost-Cutting Plans

Amazon India is set to relocate its corporate headquarters from the World Trade Centre (WTC) in the heart of Bengaluru to a more cost-effective office space near the city’s airport. This move, expected to be completed by 2026, marks a significant shift in Amazon’s operations and highlights the company’s ongoing efforts to streamline expenses.

The decision to vacate the nearly 500,000 square feet of office space at the WTC, a prominent building located in Bengaluru’s northwest region, raises questions about the potential impact on nearby residential areas and the broader commercial real estate market. Brigade Enterprises, the owners of the WTC, are now faced with the challenge of replacing such a large tenant, which could influence rental income for properties nearby.

Amazon’s new office space in Sattva, located just 15 minutes from Kempegowda International Airport, promises substantial cost savings for the company. The new location, positioned on the city’s outskirts, is expected to cost Amazon around one-third of the Rs 250 per square foot they currently pay at the WTC. This reduction is part of Amazon’s broader strategy to focus on efficiency and optimize its spending as it adapts to the evolving business landscape.

The relocation process is scheduled to begin in April 2025 and is expected to be completed by April 2026. An Amazon spokesperson confirmed the move, emphasizing that the company regularly evaluates its office needs in alignment with its long-term business goals. This relocation is expected to affect not only Amazon’s operational costs but also its employees, many of whom currently reside in Brigade Gateway, the 40-acre integrated complex where Amazon’s headquarters is located.

Brigade Enterprises clarified that the lease agreement for the WTC office remains active, and the company had previously explored the option of expanding into additional space in a development on Bellary Road, located near the airport. Despite this, Amazon has chosen to relocate rather than expand at their current location, highlighting the company's preference for a more cost-efficient option that aligns with their operational needs.

Amazon's current headquarters in Brigade Gateway offers a convenient and desirable environment for employees. The complex includes residential flats, a shopping centre, a five-star hotel, a hospital, and a school, creating a self-contained community. Approximately a quarter of the 1,200 flats are occupied by Amazon employees, providing them with easy access to work. The complex also features amenities such as a club, jogging track, and sporting facilities, enhancing the overall work-life balance for employees.

However, the move to Sattva, located about 20 kilometers away from Brigade Gateway, has sparked concerns among Amazon employees. Many workers are unhappy with the shift, as it will likely lead to longer commutes. The new office location, situated on the city’s outskirts, is expected to increase travel times, especially during peak hours when Bengaluru’s notorious traffic congestion is at its worst. The journey to the new location could take over 80 minutes, a considerable inconvenience for employees accustomed to the proximity of their current office.

This change not only represents a shift in Amazon's real estate strategy but also highlights broader trends in the corporate world as companies reassess their office needs in response to changing work dynamics, including the rise of hybrid work models and the ongoing push for cost-efficiency. For Amazon, the move to a more affordable location is a step towards adapting to a more sustainable business model, but it also reflects the growing challenges faced by employees who must balance the demands of their professional and personal lives.

As the relocation date draws closer, both Amazon and its employees will need to adapt to the changes ahead. The company’s decision to move its headquarters to Sattva offers an interesting case study in the evolving nature of corporate real estate and the impact such shifts can have on employees, businesses, and local communities. While the long-term benefits for Amazon are clear in terms of cost savings, the short-term challenges for its workforce will require careful consideration and support as the transition unfolds.