AWS Faces Workforce Reduction; Amazon Withholds Specifics

Amazon Web Services (AWS) is conducting an undisclosed number of layoffs as part of an internal business goal evaluation and strategic restructuring.

New Delhi: As part of an internal evaluation of its business goals, Amazon has revealed that it is laying off an undisclosed number of workers from its cloud computing company, Amazon Web Services (AWS).

After a thorough review of our organisation, our priorities, and what we need to focus on going forward, we’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” said Amazon spokesperson Brad Glasser adding that “we didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition”.

Amazon did not list all of the impacted teams or reveal how many roles were affected. However, according to reports, Michelle Vaz, the head of AWS’s Training and Certification division, said in an internal memo that her department was one of those experiencing layoffs.

The most recent round of layoffs comes after AWS’s growth slowed, as seen by Amazon’s May first-quarter earnings report.

Amazon said that hiring is still taking on in other AWS divisions, indicating that the business is still growing in high-priority areas despite the cuts.

Under CEO Andy Jassy, who succeeded Jeff Bezos in 2021, the firm has been undergoing a major reorganisation. Amazon has cut off around 27,000 workers in a variety of business sectors, including its retail, communications, and devices and services businesses, since the end of 2022.

The most recent layoffs are a part of a larger trend in the global technology industry, where labour structures are changing due to a combination of post-pandemic correction, macroeconomic conservatism, and the rapid use of artificial intelligence.

At its next earnings call later this quarter, the company is anticipated to shed additional light on its staff and hiring intentions.

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