AWS confirms layoffs amid strategic realignment

Amazon has confirmed a round of layoffs within its Amazon Web Services (AWS) cloud computing division. The company has not disclosed the exact number of employees affected or specific teams impacted by the workforce reduction. its reported that this move follows an internal review of the organisation's strategic priorities and comes as part of a broader trend of restructuring and cost optimisation across the technology sector.

These layoffs seem to occur against a backdrop of slowing growth for AWS. The division's revenue increased by 17% year-on-year to USD 29.27 billion in the first quarter, a deceleration from the 18.9% growth recorded in the previous quarter.

Amazon spokesperson Brad Glasser stated, "After a thorough review of our organisation, our priorities, and what we need to focus on going forward, we've made the difficult business decision to eliminate some roles across particular teams in AWS." He added that these decisions were not made lightly and are necessary as the company continues to invest, hire, and optimise resources, according to a statement shared with CNBC.

Amazon did not provide a specific headcount. According to CNBC, internal communications, including a memo from Michelle Vaz, who leads AWS's Training and Certification unit, indicate that her department is among those experiencing reductions.

Amazon CEO Andy Jassy previously hinted at a potential reduction in the corporate workforce due to the increasing adoption of generative AI tools. He stated in internal communications that AI and automation could lead to workforce restructuring. However, Amazon clarified that the current AWS layoffs are not solely driven by AI, but rather by a wider effort to streamline operations and reallocate resources.

The job cuts at AWS are part of a larger ongoing restructuring under CEO Andy Jassy, who took leadership in 2021. AWS itself experienced layoffs in 2023, impacting teams in physical stores, technology and sales and marketing.

Despite the recent layoffs, Amazon maintains that it continues to hire in core areas, with thousands of open roles across AWS, signalling ongoing expansion in high-priority segments. The technology industry as a whole is witnessing a wave of workforce adjustments as companies navigate post-pandemic market conditions, macroeconomic pressures, and the rapid integration of artificial intelligence into their operations.