Amazon cuts some jobs in cloud computing unit as layoffs continue

Amazon has announced layoffs within its cloud computing sector, confirming the news on Thursday. The company stated that after a comprehensive evaluation of its organizational structure and future priorities, it made the challenging decision to cut certain positions in Amazon Web Services (AWS). Brad Glasser, an Amazon spokesperson, emphasized that these choices were not made lightly and reassured that the company is committed to assisting affected employees during their transition period. However, specifics regarding which teams within AWS would be affected or the total number of layoffs have not been disclosed. This announcement comes on the heels of Amazon's third consecutive quarterly revenue miss for AWS, with first-quarter sales rising 17% to $29.27 billion, a decline from the 18.9% growth seen previously. The company clarified that the job cuts are not directly related to its investments in artificial intelligence but are part of a broader strategy to optimize its workforce and concentrate on key priorities. Despite these layoffs, Amazon has continued to recruit for positions within AWS. CEO Andy Jassy has been pursuing cost reduction measures for several years, with over 27,000 employees laid off since 2022. While the pace of job reductions has slowed this year, various divisions, including stores and communications, have also experienced staff cuts. Last year, AWS reduced hundreds of jobs in its physical stores and sales and marketing divisions. Jassy recently indicated that Amazon's workforce might shrink further due to the integration of generative AI into its operations, suggesting a shift in job requirements. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," he informed employees. The long-term impact of these changes remains uncertain, but the company anticipates a decrease in its overall corporate workforce in the coming years.