Recode reported that shutting down Quidsi will result in 263 layoffs. These employees, however, have the option to reapply for positions at Amazon.
“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,” a spokesperson for Amazon told Recode. “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 is no word yet whether the sites under Quidsi would be going offline.
Amazon bought Quidsi about six years ago for $545 million. The acquisition was the culmination of an intense price battle between the companies threatening to push Quidsi out of business.
[Related: Walmart Confirms Jet.com Acquistion]
Marc Lore, who was Quidsi co-founder and CEO at the time of the acquisition, worked at Amazon for a few years before he opened his own marketplace, Jet.com in 2015, which was sold in 2016 to Walmart for $3.3 billion.