Amazon to Cut Hundreds of Jobs in AWS Cloud Computing Unit

Amazon announced on Wednesday its plans to reduce its workforce in its cloud computing division, Amazon Web Services (AWS), as part of a strategic realignment.

The company will be eliminating “a few hundred roles” within the team responsible for technology related to physical stores. This decision comes shortly after Amazon’s announcement of discontinuing the Just Walk Out technology in its U.S. grocery stores.

Apart from the physical store’s technology team, Amazon revealed that “several hundred roles” will also be cut in the AWS sales, marketing, and global service organization. The majority of these reductions are linked to changes in AWS training and certification programmes, as well as sales operations. Amazon clarified that it is reallocating resources to prioritise other business initiatives.

Amazon spokesperson Duncan Neasham stated, “These decisions are difficult but necessary as we continue to invest, hire, and optimise resources to deliver innovation for our customers.”

The layoffs in AWS follow earlier staff reductions across various Amazon subsidiaries this year. In January, the company downsized its workforce by several hundred positions within its Prime Video and MGM Studios units. During the same month, Twitch, the popular social media platform owned by Amazon, announced over 500 job cuts to streamline costs. Additionally, the online audiobook and podcast service Audible reduced about 5% of its workforce.

Amazon affirmed its commitment to hiring in priority areas, with thousands of job openings listed for AWS roles. It pledged to explore internal opportunities for affected employees.