Amazon Cuts Jobs in AWS Amid Shift to AI Technologies

Las Vegas, Nevada – Amazon confirmed on Thursday that it is laying off some employees in its cloud computing division, Amazon Web Services (AWS). Spokesperson Brad Glasser stated that the company made the tough decision to eliminate roles following a thorough review of its priorities and focus areas.

The specific teams impacted by the layoffs have not been disclosed yet, though a memo from division head Michelle Vaz indicated that the training and certification unit was affected. “We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition,” Glasser added.

Amazon’s decision to cut jobs comes as the company continues to navigate a challenging economic environment. In May, AWS reported its third consecutive quarterly revenue miss, despite sales rising by 17% to $29.27 billion in the first quarter. The company has stated that these job cuts are part of its efforts to streamline operations, rather than a direct result of investments in artificial intelligence.

CEO Andy Jassy has been on a mission to reduce costs since 2022, resulting in over 27,000 job reductions within the corporation. The layoffs this year have been smaller in scale compared to previous years, impacting units across various departments including physical stores technology and sales.

“We will need fewer people doing some of the jobs that are being done today,” Jassy informed staffers, explaining the company’s pivot towards generative AI tools. The layoffs fell upon many employees, with reports of frequent termination emails being issued, some notifying workers that their computers were being deactivated immediately.

As part of the restructuring, those laid off from AWS in the U.S. will receive pay and benefits for at least 60 days, and may qualify for severance packages. Amazon continues to emphasize its commitment to hiring in other essential areas of the business, aiming to maintain its competitive edge in the marketplace.

The recent layoffs align with broader trends in the tech industry, where many firms are turning to AI and automation to streamline operations. As these companies adapt, Amazon seeks to balance investment in future technologies while ensuring operational efficiency and sustaining leadership in the cloud computing space.