Amazon is shutting down its fast brick-and-mortar delivery service.

• CNBC has learned that Amazon is shutting down a service that provides same-day delivery from mall and brick-and-mortar retailers.
• According to sources, the company has halted the development of the service known as Amazon Today and will begin phasing it out.
• Amazon has informed CNBC that retail partners will be able to continue fulfilling orders with Amazon until January 24, 2025.

CNBC has learned that a service that provides same-day delivery from mall and brick-and-mortar retailers is shutting down.

According to two sources, the company has halted any new development of the service known as Amazon Today and will begin to phase it out. The sources requested anonymity as they were not authorized to speak to the media.

Amazon has announced that it will shut down the bulk of its program by Dec. 2, but select retail partners will be able to continue fulfilling orders with Amazon through Jan. 24, 2025.

Amazon announced that a small number of employees will be laid off and given severance, while others will be moved to different roles within the company.

On Monday, Amazon Today employees learned in a meeting that some of them would be laid off, according to sources. Approximately 300 employees were working on Amazon Today, according to the same sources.

Amazon's cost-cutting efforts have led to the closure of Amazon Today.

Since 2022, Amazon CEO Andy Jassy has been implementing cost-cutting measures across the company to adapt to rapidly changing macro conditions. This resulted in the largest layoffs in the company's history, with over 27,000 jobs being cut. Jassy has taken a more decisive approach to the company's unproven, costly projects than his predecessor, Jeff Bezos. Jassy has cancelled several projects, including a telehealth service, a video-calling device for kids, and a roving Treasure Truck.

In 2022, Amazon Today was launched, enabling retailers on Amazon to provide fast delivery from their physical stores and malls in select cities. Amazon's contracted Flex drivers, who deliver using their own vehicles, pick up packages and deliver them to customers' doorsteps within hours of order placement.

Amazon is accelerating its efforts to deliver online purchases to customers' doorsteps at a faster pace, with a focus on same-day deliveries. The company is expanding its facilities to increase its speed and competitiveness in the market, with Instacart and DoorDash also expanding their services beyond food and groceries to retail.

According to the program's website, several retailers, including Office Depot, Staples, PacSun, GNC, and Fabletics, have signed up to Amazon Today.

Amazon is collaborating with its retail partners to facilitate a seamless transition, the company stated. Additionally, Amazon emphasized its commitment to prioritizing and investing in rapid delivery.

The shutdown of Amazon Today was unexpected as the company was in the process of bringing on other retailers and had recently pitched the service to more retailers at a conference.

Amazon's Today routes, also known as "retail deliveries," are less profitable for Flex contractors because they don't usually fill up a driver's trunk.

WATCH: What it's like to be an Amazon Flex delivery driver