Amazon will soon shut down its brick-and-mortar delivery service

the amazon CNBC has learned that the mall and brick-and-mortar retailers are shutting down a service that offers same-day delivery.

The company has halted any new development of the service, known as Amazon Today, and will begin shutting it down, according to two people with knowledge of the matter. The people asked to remain anonymous because they were not authorized to speak to the press.

Most of the programs will be stopped by December 2, the people said. Amazon told CNBC that select retail partners will be able to continue fulfilling orders with Amazon Today until January 24.

A small number of employees will be laid off and given severance while others will be transferred to other positions within Amazon, the company said.

Employees working at Amazon Today learned the news at a meeting Monday, where some workers were told they would be laid off, the people said. About 300 employees were working at Amazon Today, the people said.

Amazon Today's closing is the latest example of the company's broader cost-cutting efforts.

Starting in 2022, Amazon CEO Andy Jassy is on a campaign to cut costs across the company to meet rapidly changing macro conditions. Starting in 2022 and extending through 2024, Amazon has initiated the largest layoffs in its history, cutting more than 27,000 jobs. Jesse has taken a harder line on the company's unproven, expensive bets than his predecessor, Amazon founder Jeff Bezos. Jassi has rolled out several projects, including a telehealth service, video calling devices for kids, and a roving treasure truck.

Launched in 2022, Amazon Today allows retailers who sell on Amazon to offer expedited delivery from their brick-and-mortar stores and shopping malls in select cities. Amazon's contracted Flex drivers, who make deliveries using their own vehicles, pick up packages and drop them off at customers' doorsteps within hours of ordering.

Amazon Today was part of the company's push to bring online shopping to consumers' doorsteps at a faster pace. Amazon continues to add more features focused on same-day delivery to boost sales and compete with other companies that offer ultra-fast delivery. These include Instacart and DoorDash, which have expanded beyond food and grocery and into retail.

The company signed up several retailers on Amazon Today, according to the program's website. The list includes Office Depot, Staples, PetcoPacSun, the vitamin and dietary supplement chain GNC and Fabletics, the athletic wear brand owned by actress Kate Hudson.

Amazon is working with retailer partners that it has signed up for the service to ensure a smooth transition for them, the company said. Amazon added that it continues to prioritize and invest in faster delivery.

The decision to close Amazon Today was surprising because Amazon was in the process of onboarding other retailers, one of the people said. The company was pitching the service to more retailers at a conference last week.

The service is more expensive than traditional delivery routes where Flex drivers can fill their cars with packages from an Amazon warehouse, one of the people said. Amazon Today routes, which the company calls “retail delivery,” typically don't fill a driver's trunk, making the program less worthwhile for flex contractors.

See: What it's like to be an Amazon Flex Delivery Driver