Amazon Cuts Hundreds of Jobs in Cloud Computing Branch

Amazon’s cloud computing branch, known as AWS, is letting go of hundreds of workers from its physical stores technology team as well as its sales, marketing, and global services unit, per the e-commerce company’s internal emails on Wednesday.

This unfavorable decision, according to an AWS spokesperson, is part of an effort to streamline the company’s operations and concentrate efforts on strategic areas deemed most impactful. “We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition to new roles in and outside of Amazon,” the spokesperson said.

Sales growth within AWS has recently slowed down as companies scaled back their cloud expenditures amidst increasing interest rates. Despite this, Amazon remains cautiously optimistic, noting signs of a potential market rebound.

The cuts to the store technology team within AWS follow Amazon’s announcement of removing cashierless checkout systems from its U.S. Amazon Fresh stores. This move impacts various technologies under the AWS umbrella, including the Just Walk Out cashierless tech, Dash smart carts, and Amazon One palm-based payment system.

The decision to reduce the store technology division workforce aligns with broader strategic shifts in the usage of certain applications within both Amazon-owned and third-party stores. This restructuring began in 2022 when the store technology team was transferred from Amazon’s retail group to its cloud computing arm.

Amazon’s recent layoffs are part of a broader trend, with the company reducing its workforce significantly over the past year. From late 2022 through 2023, Amazon initiated its largest layoffs in history, affecting over 27,000 jobs across various departments. This year, layoffs have also occurred in units such as Twitch, Audible, Buy with Prime, Prime Video, and MGM Studios.

All affected U.S. employees will continue to receive pay and benefits for at least 60 days, with eligibility for severance packages. This demonstrates Amazon’s commitment to supporting its workforce during transitions.