Amazon may be one of the largest and most valuable internet companies in the world, but that doesn't mean all of its ventures turn out successful. The company has announced it is closing Quidsi, the unit that operates six shopping websites, because it can't make a profit.
Amazon bought Quidsi six years ago for around $545 million, making it the company's fourth-largest acquisition. The New Jersey-based subsidiary's websites included Diapers.com, Soap.com, toy site Yoyo.com, and pet supplies site Wag.com.
"We have worked extremely hard for the past seven years to get Quidsi to be profitable, and unfortunately we have not been able to do so," an Amazon spokesperson said in a statement.
More than 260 employees will lose their jobs in June as a result of the closure, according to a notification sent to the New Jersey Department of Labor. The software development team will join Amazon's grocery delivery department, AmazonFresh, and Quidsi's goods will merge with Amazon's own site.
"Quidsi has great brand expertise and they will continue to offer selection on Amazon.com; the software development team will focus on building technology for AmazonFresh." There's no word on when the sites will go offline.
Amazon has recently shifted its focus toward its grocery market enterprises, such as its cashier-free store and the newly announced AmazonFresh Pickup, as well as its physical bookstores.
The news of Qudsi's closure comes just after Amazon confirmed it was purchasing Souq.com, an e-commerce marketplace serving the Middle East based out of Dubai.
Quidsi founder Marc Lore reluctantly agreed to sell his firm to Amazon following a price war between the companies. He worked at Jeff Bezos's organization for a few years after the deal completed but left to form Amazon competitor Jet.com in 2015, which he sold to Walmart for $3.3 billion last year.