Seattle, Washington – Technology giant Amazon is undergoing significant restructuring, leading to job cuts impacting hundreds of employees within its cloud computing division. The company has been shifting its focus towards physical stores, particularly Amazon Fresh, which were first introduced in 2020. As part of its recent changes, Amazon has made the decision 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 stated that these decisions, while challenging, are necessary to align resources and drive innovation for the company’s customers. Despite the cuts, Amazon emphasized its commitment to hiring and growth in critical areas of its business, with thousands of job openings available.
Amazon clarified that the job reductions will impact operations globally, with a significant concentration of AWS roles based in Seattle, the company’s headquarters. US-based employees affected by the cuts will receive pay and benefits for at least 60 days, support in finding new employment opportunities, access to transitional health benefits, and are eligible for severance pay. As of the end of the previous year, Amazon had over 1.5 million full-time and part-time employees, excluding contractors and temporary staff.
In recent months, Amazon has been heavily investing in artificial intelligence (AI) through AWS, with a particular focus on safety and research startup companies such as Anthropic. This strategic move aligns with a broader trend in the technology sector, where companies like Microsoft are also prioritizing the development of AI capabilities. The tech industry experienced a significant increase in job cuts in 2023, with over 168,000 positions eliminated, representing a 73% rise compared to the previous year, according to US career consultancy Challenger, Gray & Christmas.