Amazon is shutting down Quidsi, it’s one of the largest-ever acquisitions, that runs six shopping sites, including Diapers.com, Wag.com and Soap.com.
The shutdown will face a consequence in layoffs of 263 people, as per a New Jersey state filing. But Bloomberg said some employees from these can apply at Amazon for new positions.
An Amazon spokesperson in a statement, said the shutdown was on profitability issues.
“We have worked hard for the past seven years to ascertain Quidsi is profitable, and regrettably we failed to do so,” said the statement. “Quidsi already has brand expertise and will pursue to offer choosing on Amazon.com; while the software development team will concentrate on AmazonFresh building technology.
The spokesperson did not inform the time or date when the sites will be offline.
Amazon bought six years ago Quidsi almost in a deal valued at around $545 million. As of now, this was the company’s fourth-largest purchase. The acquisition was an intense price battle amidst the companies that were bullying Quidsi, the Jersey City-based company, out of business.
Marc Lore, Quidsi’s co-founder and then-CEO worked at Amazon following the deal for a few years, but he did not enjoy his time. He went on and launched Jet.com, in 2015, an Amazon competitor, and sold the same for $3.3 billion last year to Walmart.
Lore now runs for Walmart, all U.S. e-commerce operations. Last week, he told the goal for Walmart is to win the U.S. e-commerce battle. On asking Lore at that time if it means being behing Amazon as No.2 player, Lore said “Win means win”.