Amazon Announces Layoffs in Cloud Computing Unit: Job Cuts Continue Amid Industry Trend

Amazon has announced that certain positions within its cloud computing division, Amazon Web Services (AWS), will be eliminated following a comprehensive review of the company’s organizational structure and strategic priorities.

In a statement, Amazon spokesperson Brad Glasser explained, “After a thorough assessment of our organization, our priorities, and our focus areas for the future, we have made the challenging business decision to reduce some roles across specific teams within AWS. This decision was not taken lightly, and we are fully committed to supporting the affected employees during their transition.”

The company has yet to disclose which specific units within AWS will be impacted or the exact number of employees who will be affected by these job cuts.

Reuters first reported on these layoffs.

In May, Amazon reported a third consecutive quarterly revenue miss at AWS, with sales increasing 17% to $29.27 billion in the first quarter, compared to 18.9% growth in the previous period.

While the cuts are not primarily attributed to investments in artificial intelligence (AI), they are the result of ongoing efforts to streamline the workforce and refocus on key priorities. Amazon confirmed that it continues to hire within AWS.

CEO Andy Jassy has been spearheading cost-cutting measures for several years, resulting in over 27,000 employee layoffs since 2022. Job reductions have continued this year, albeit on a smaller scale compared to previous years. Amazon’s stores, communications, and devices and services divisions have experienced layoffs in recent months.

Last year, AWS reduced hundreds of jobs within its physical stores technology and sales and marketing units.

In light of the company’s embrace of generative AI, Jassy forecasted last month that Amazon’s corporate workforce could experience further reductions. He stated, “We will require fewer people to perform certain jobs currently being handled, while simultaneously requiring more individuals for other types of roles. The exact impact on our total corporate workforce over time is uncertain, but in the next few years, we anticipate that this will result in a reduction of our overall corporate workforce.”

It should be noted that this article does not delve into specific details regarding which positions or teams are being affected by these layoffs within AWS.