Amazon’s Cloud Computing Division Set to Lay Off Hundreds of Workers
Amazon Web Services (AWS), the renowned cloud computing division of Amazon.com, has revealed plans to reduce its workforce by several hundred employees as part of cost-cutting initiatives. These cuts will affect sales and marketing teams, as well as the group dedicated to technology for Amazon’s physical stores.
In a statement released recently, an AWS spokesperson stated, “We’ve identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact.”
The spokesperson also emphasized Amazon’s commitment to finding new roles for affected employees.This move follows a similar action approximately a year ago when AWS underwent its largest-ever round of job eliminations, resulting in 27,000 corporate roles being slashed after a hiring surge during the pandemic.
Despite being the largest seller of rented computing power and data storage, AWS faced a significant slowdown in sales growth last year due to reduced spending by corporate clients and delays in technology modernization projects.
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Moreover, Amazon’s decision to remove the Just Walk Out cashier-less shopping system from its Amazon Fresh grocery stores in the US and replace it with an automated grocery cart coincides with the cuts to the stores technology team.
The announcement by AWS comes amidst a trend of layoffs in the tech industry this year.
In January, Microsoft disclosed plans to lay off 1,900 employees in its video-game divisions, including at Activision Blizzard, which it recently acquired. Instacart, a global grocery-delivery service, also announced the layoff of 250 employees as part of a restructuring.
In February, Cisco, a network equipment maker, revealed its intention to lay off over 4,000 workers, constituting 5% of its global workforce.
Moreover, Google’s CEO, Sundar Pichai, warned of further job cuts as the company seeks to simplify operations and increase efficiency.
Pichai acknowledged that more “role eliminations” are forthcoming, adding to the hundreds of staff already laid off earlier in the year.
According to Layoffs.fyi, a platform that tracks job cuts in the tech industry, over 70 other tech companies have collectively let go of almost 32,000 employees since the beginning of the year. This indicates a broader trend of restructuring and cost-cutting measures across the technology sector.
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