Amazon has reportedly cut hundreds of jobs within its Amazon Web Services cloud computing division, according to sources familiar with the matter.
Instead of providing specific numbers, Amazon confirmed the decision, citing ongoing efforts to optimise resources while continuing to invest in customer-focused innovation.
These layoffs follow warnings by CEO Andy Jassy, who recently said the rising use of generative AI would reduce workforce needs across the company.
The cuts affect several AWS teams, including specialists who support customers in developing new products and selling services. Employees reported receiving termination emails on Thursday, with their system access deactivated soon after.
Rather than focusing solely on AWS, Amazon has also been reducing roles in other units, such as its books division, devices and services unit, and Wondery podcast platform.
Despite these workforce reductions, AWS sales rose 17% in the first quarter to $29.3 billion compared to a year earlier, with operating income increasing by 23% to $11.5 billion.
Amazon, alongside firms like Microsoft, Meta, and CrowdStrike, is increasingly relying on AI tools instead of human workers to automate tasks, write software code, and streamline operations as part of a broader trend affecting the tech industry.
Amazon's latest cuts reflect efforts by Jassy to reduce bureaucracy and eliminate managerial layers, aiming to keep the company agile amid rapid AI adoption and changing business priorities.
