Amazon Slashes Hundreds of Jobs in Cloud Computing Unit
Amazon, the technology behemoth, has announced significant job cuts affecting hundreds of employees in its cloud computing division, Amazon Web Services (AWS).
Despite AWS’s substantial growth, accounting for 14% of Amazon’s total revenue according to its latest financial report, the company has decided to streamline its workforce. The restructuring comes amid shifts in Amazon’s strategy, particularly in its physical stores segment, exemplified by the removal of the self-checkout system, Just Walk Out, from stores across the US.
The job cuts primarily impact roles in sales, marketing, global services, and the physical stores technology team. An AWS spokesperson described the decisions as “difficult but necessary” as Amazon strives to optimize resources and prioritize innovation for its customers.
While acknowledging the impact on affected employees, Amazon emphasized its ongoing commitment to hiring and growth, particularly in core business areas. The company aims to assist affected employees by offering transitional support, including help finding alternative employment, access to health benefits, and eligibility for severance pay.
The cuts will have global ramifications, although the majority of affected AWS roles are located in Amazon’s headquarters in Seattle. US-based employees will receive continued pay and benefits for at least 60 days following the announcement.
Amazon’s focus on artificial intelligence (AI) remains unwavering, with recent investments in AI safety and research start-up Anthropic. The company’s dedication to advancing AI capabilities aligns with industry trends, as technology giants like Microsoft, with investments in AI-driven platforms like ChatGPT, compete to bolster their AI expertise.
The job cuts at Amazon extend beyond the cloud computing unit, as evidenced by previous layoffs across subsidiaries such as Twitch, Prime Video, and MGM studios. The tech sector at large witnessed significant job reductions in 2023, with a notable increase compared to the previous year, reflecting broader industry dynamics and challenges.
