Walmart's (WMT) - Get Walmart Inc. Report Jet subsidiary will no longer provide fresh-food delivery services in New York, about a year after the online shopping network began offering the service in the city.
It's the latest sign that the company is scaling its operations back about three years after Walmart spent $3.3 billion to purchase the startup in an effort to bolster its position against e-commerce rival Amazon.com (AMZN) - Get Amazon.com, Inc. Report .
Jet also will close a warehouse in the Bronx that it had been using to fulfill those online orders as well as laying off some drivers tied to the business. The scaled-back operations will cost Jet between 200 and 300 jobs, Bloomberg reported.
Walmart has been able to increase its e-commerce revenue, but the majority of that expansion has been thanks to the company's curb-side pickup operations. Home deliveries are a more expensive operation.
Jet's staff was fully integrated into Walmart earlier this year amid dwindling profits and Walmart even explored a spinoff of shopping concierge service JetBlack.
Earlier this week, Walmart announced plans to redesign the produce department in its U.S. store locations, ahead of impending brick-and-mortar competition from Amazon.
Walmart, the country's largest grocer, will widen aisles, add low-profile displays in its produce departments, adding an organic shop and updating the signage throughout its stores.
Walmart is selling the changes as an improvement for both customers and workers in the produce department.
"In addition to improving the shopping experience for customers, these changes make it easier for our associates to work in the department," Walmart wrote in a blog post on Wednesday. "Our new format simplifies workloads, making it easier for our associates to stock produce. This way, they can re-focus their time on serving customers."