- Amazon has announced plans to reduce its workforce in its cloud computing division, impacting hundreds of employees.
- The decision comes as Amazon Web Services (AWS) continues to expand, now representing 14% of the company’s total revenue, as per its latest financial report.
- Amazon’s move reflects a strategic shift, particularly in its physical retail sector, including Amazon Fresh stores launched in 2020.
The tech giant has revealed its intention to eliminate its self-checkout system, Just Walk Out, from all its stores. The job cuts primarily affect roles in sales, marketing, global services, and the physical stores technology team.
An AWS spokesperson acknowledged the difficulty of these decisions but emphasized their necessity to optimize resources for continued innovation in customer service.
Despite the job cuts, Amazon affirmed its commitment to ongoing hiring and growth, particularly in core business areas.
The company stated that thousands of job opportunities are available and that it is actively seeking internal placements for affected employees.
The layoffs will impact operations worldwide, with the majority of affected roles located in Seattle, Amazon’s headquarters.
Amazon outlined the support measures for affected US-based employees, including pay and benefits for at least 60 days, assistance in finding alternative employment, access to transitional health benefits, and eligibility for severance pay.
As of the end of the previous year, Amazon boasted a workforce exceeding 1.5 million full-time and part-time employees, excluding contractors and temporary staff.
In recent months, Amazon has been prioritizing advancements in artificial intelligence (AI), particularly through AWS.
The company’s investment in AI safety and research startup, Anthropic, underscores its commitment to this area. Notably, other technology giants like Microsoft, which recently invested in ChatGPT, are also intensifying efforts to enhance their AI capabilities.
Earlier this year, Amazon implemented significant job cuts across its subsidiaries, including Twitch, Prime Video, and MGM studios. More than 500 Twitch employees, representing a third of the platform’s workforce, were affected by these layoffs.
The broader tech sector has experienced a surge in job cuts, with a notable increase of 73% compared to the previous year, according to US career consultancy Challenger, Gray & Christmas.
In summary, Amazon’s decision to reduce its workforce in the cloud computing division reflects its ongoing strategic realignment and focus on innovation.
While these job cuts are challenging for affected employees, Amazon remains committed to supporting them during this transition period.
The evolving landscape of the tech industry, marked by intensified competition and advancements in AI, underscores the need for companies like Amazon to continually adapt and optimize their resources to remain competitive in the market.
