The decision will impact at least 500 people across different functions and businesses, including Amazon Web Services (AWS), support roles and human resources.
The layoffs are ongoing and are part of the additional job cuts Amazon CEO Andy Jassy announced in March, impacting some 9,000 employees across the world.
According to the source, as part of the retrenchment drive, some seller onboarding functions in tier-2 cities, including Kochi and Lucknow, have also been discontinued.
A representative for Amazon declined to comment on the news and did not respond to requests for queries.
There have been two rounds of layoffs at Amazon recently.
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Amazon first announced in January that roughly 18,000 roles will be eliminated amid difficult economic circumstances.
Last year, the company closed several businesses in India, including its edtech, food delivery, and wholesale distribution operations.
Recently, Amazon CFO Brian Olsavsky told analysts that the growth of their cloud business, AWS, would continue to decline as business customers anticipated instability and reduced spending.
The development comes amid a slowdown in Amazon’s e-commerce business growth in the Indian markets.
In late April, the Seattle-based company said it is shutting down its Halo business that offers health-related services.
At the time, it was reported that the company also started cutting jobs in the US, Canada, and Costa Rica across the AWS and human resources divisions.
Employees from the company’s advertising division, video game and Twitch live-streaming divisions have also been fired.