Amazon's AWS division cuts hundreds of jobs amid AI-led workforce shift
With a global workforce of 1.6 million as of March-end, Amazon now joins other tech giants like Microsoft, Meta, and CrowdStrike in announcing job cuts this year.
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Amazon has laid off hundreds of employees in its Amazon Web Services (AWS) cloud unit, just weeks after CEO Andy Jassy warned that the growing adoption of generative AI tools could lead to job reductions, according to Reuters. The layoffs were confirmed on July 17.
With a global workforce of 1.6 million as of March-end, Amazon now joins other tech giants like Microsoft, Meta, and CrowdStrike in announcing job cuts this year. The wave of layoffs comes as more companies integrate AI to automate coding and routine tasks, reducing their dependence on human labor and aiming to streamline costs.
“We’ve made the difficult business decision to eliminate some roles across specific teams in AWS,” an Amazon spokesperson said in a statement quoted by Reuters. “These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”
Last year in April, AWS laid off several hundreds in another round of cuts. Jobs were cut across specific Sales, Marketing, and Global Services (SMGS) organizations.
And a year before that in 2023, AWS let go of around 27,000 employees in multiple rounds.
Despite the cuts, AWS reported strong performance in the first quarter, with sales climbing 17% year-over-year to $29.3 billion and operating income rising 23% to $11.5 billion.
Amazon confirmed that several AWS teams were impacted by the layoffs. The company has been making selective job reductions across various units in recent months, including its books, devices and services teams, and the Wondery podcast division. CEO Jassy has also been working to trim internal bureaucracy, including by reducing layers of management.
In March earlier this year, Amazon laid off around 100 employees from its Devices and Services division, the units responsible for consumer hardware and emerging tech products such as the Kindle, Echo smart speakers, Alexa voice assistant, and Zoox self-driving cars.
The cuts were part of a regular internal business review and reflect ongoing efforts to operate more efficiently, Amazon said in the report.
