Seattle, Washington – Amazon announced on Wednesday its decision to reduce its workforce in its cloud computing unit AWS, signaling a strategic shift in the company’s operations. The tech giant stated that it plans to eliminate “a few hundred roles” within the team responsible for overseeing technology for its physical stores, following the recent decision to discontinue the use of Just Walk Out technology in its U.S. grocery stores.
Not limited to the physical stores technology team, Amazon also revealed plans to cut “several hundred roles” in the AWS sales, marketing, and global service organization. These reductions are primarily linked to changes in AWS training, certification programs, and sales operations. The company emphasized that these measures are aimed at enabling investments in other business priorities.
In a statement, Amazon spokesperson Duncan Neasham acknowledged the challenges posed by these decisions but emphasized their necessity in the context of the company’s ongoing investment and resource optimization efforts to drive innovation for its customers. This round of layoffs in AWS follows similar workforce reductions across Amazon and its subsidiaries earlier this year.
In January, Amazon implemented layoffs affecting several hundred positions within its Prime Video and MGM Studios unit. Concurrently, Twitch, the social media platform under Amazon’s ownership, let go of over 500 employees to streamline costs. Additionally, Audible, the online audiobook and podcast service, reduced its workforce by approximately 5%.
Despite these layoffs, Amazon affirms its commitment to hiring in priority areas and highlights the availability of thousands of job openings within AWS. The company also pledges to explore internal opportunities for impacted employees to facilitate smooth workforce transitions and retain talent within the organization.