Amazon Web Services lays off hundreds of employees
What's the story
Amazon Web Services (AWS), the global leader in cloud services, has confirmed the termination of several employees from its sales, marketing, and physical stores technology departments.
This decision is part of a broader strategic adjustment related to application usage in both Amazon-owned and third-party stores.
An AWS representative stated that they are streamlining certain areas of the organization to focus on key strategic areas for maximum impact.
Strategy shift
Layoffs minimize redundancy and inefficiency within the company: AWS
Matt Garman, AWS senior vice president, emphasized that the decision to reduce staff was not taken lightly.
He underscored the need for flexibility in this rapidly changing industry and stated that these changes are preparing the organization for future challenges.
The layoffs align with their strategy and priorities, aiming to minimize redundancy and inefficiency within the company.
Layoff effects
Impact on AWS physical stores technology teams
Dilip Kumar, Vice President of AWS Applications, confirmed that the layoffs would impact specific teams managing identity and checkout functions within the Physical Stores Technology organization at AWS.
This follows Amazon's decision to eliminate cashier-less checkout systems in its US Fresh stores.
The affected technologies include Just Walk Out, Dash smart carts, and Amazon One palm-based payment technology, all transferred to AWS from Amazon's retail group in 2022.
Job cuts
Amazon's ongoing restructuring efforts
The layoffs are part of Amazon's ongoing restructuring efforts, which began at the end of 2022 with widespread job cuts across nearly all sectors of the company.
Over 27,000 jobs were eliminated in 2022 and 2023 across various business units including Twitch, Audible, Buy with Prime, Prime Video and MGM Studios units.
According to Layoffs.fyi, over 57,000 workers have been laid off across 229 firms this year alone.
Transition assistance
Amazon's support for affected employees
Amazon said it remains committed to supporting affected employees during their transition to new roles, both within and outside the company.
US employees will continue to receive their pay and benefits for at least 60 days and will also be eligible for a severance package.
AWS is actively seeking internal opportunities for laid-off employees, as the company currently has thousands of vacancies.