Amazon confirmed Thursday that it is reducing staff within its cloud computing branch, Amazon Web Services (AWS), following a review to sharpen organizational priorities.
Amazon spokesperson Brad Glasser said the decision to eliminate roles across certain AWS teams was difficult but necessary. While the company has not disclosed the specific units or the number of employees impacted, internal sources indicate cuts in the training and certification division.
Financial Performance and Strategic Focus
AWS reported a third consecutive quarterly revenue miss in May, with sales growing 17% to $29.27 billion, down from 18.9% growth in the previous quarter. Amazon clarified that these layoffs are part of ongoing efforts to streamline and refocus, not primarily due to AI investments. Despite the cuts, hiring continues within AWS.
Amazon has cut over 27,000 jobs since 2022 across various divisions, including stores, communications, and devices. AWS itself trimmed roles in physical stores technology and sales last year. CEO Andy Jassy recently indicated that embracing generative AI will likely reduce the corporate workforce over time, shifting job roles and responsibilities.
Author’s Opinion
Amazon’s layoffs reflect the complex balance between innovation and employment. As AI reshapes industries, companies must prioritize supporting employees through reskilling and thoughtful transitions. While efficiency gains are inevitable, the human cost should not be overlooked, and responsible leadership is essential to ensure a fair future.
Featured image credit: Heute
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