"1,100 plus employees and still growing," the Quidsi website gushes. But on Wednesday Amazon.com (AMZN) - Get Report announced that it was shutting down Quidsi, which it agreed to purchase in 2010. Quidsi's businesses include Wag.com, Diapers.com, Casa.com, Soap.com, BeautyBar.com and Yoyo.com. Those business units will now be integrated into Amazon.com.
The reason is one Amazon once struggled with itself: Quidsi wasn't making any money.
"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," Amazon said in a release.
"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."
As a result of the shutdown, about 263 employees at Quidsi's site in Jersey City, N.J., will lose their jobs, according to a document filed with New Jersey's Department of Labor and Workforce Development, Bloombergreported. "Some of them will be able to apply for other Amazon jobs, according to the notice," Bloomberg said.
The company has not said when the shutdown will take place.
Amazon bought the company in one of its biggest acquisitions when it acquired Quidsi in 2011 in a $545 million deal. Quidsi co-founder Marc Lore eventually left the company and went on to start up online retailer Jet.com, which he sold to Wal-Mart (WMT) - Get Report in 2016 for $3.3 billion.
The news broke the same day Amazon announced plans to open a new warehouse center in the Houston area, creating 1,000 jobs in the process.