Amazon.com Announces Comprehensive Layoffs in Its Cloud Computing Division Amazon Web Services (AWS)
The aim of this measure is to cut costs and streamline structures. The job cuts will affect several hundred positions in sales, marketing, and global services. Additionally, hundreds of positions in the technology team for physical stores, which focuses on the systems behind the cashierless checkout programs, will be eliminated. This announcement follows the decision to replace the cashierless technology "Just Walk Out" in Amazon Fresh grocery stores in the US with another cashierless technology.
A spokesperson for Amazon Web Services stated that specific areas have been identified that require streamlining. Despite the layoffs, the spokesperson emphasized that the company continues to hire in its core business areas. "These decisions are difficult, but necessary, as we continue to invest, hire, and optimize resources to deliver innovation for our customers," said the spokesperson in a statement.
The cloud computing business has so far been a significant profit driver for Amazon but saw a slowdown in demand last year as corporate customers curtailed their spending. Amazon has ramped up its efforts in artificial intelligence, mainly through Amazon Web Services, including a $4 billion investment in the AI startup Anthropic. Late last year, The Wall Street Journal reported that Anthropic has committed to spending $4 billion on Amazon's cloud platform over the next five years.
The Layoffs at Amazon Are Part of a Wider Trend in the Tech Industry, with Other Major Companies Like Alphabet, Microsoft, and Salesforce Also Having Cut Staff. At the Beginning of the Year, Amazon Slashed Hundreds of Jobs at Its Film and TV Studio as Well as on Its Twitch Streaming Platform to Cut Costs. Despite the Layoffs, the Workforce of Many Large Tech Companies, Including Amazon, Has Nearly Doubled Since the Pandemic. Laid-off Employees Are Entitled to Receive Salary and Benefits for at Least 60 Days and Are Eligible for a Severance Payment.
