Attendees stroll by an exposition corridor at AWS re:Invent, a convention hosted by Amazon Net Companies, in Las Vegas on Dec. 3, 2024.
Noah Berger | Getty Photographs
Amazon is shedding some staffers in its cloud computing division, the corporate confirmed Thursday.
“After a radical assessment of our group, our priorities, and what we have to concentrate on going ahead, we have made the troublesome enterprise determination to get rid of some roles throughout specific groups in AWS,” Amazon spokesperson Brad Glasser mentioned in an announcement. “We did not make these selections calmly, and we’re dedicated to supporting the workers all through their transition.”
The corporate declined to say which models inside Amazon Net Companies had been impacted, or what number of staff will likely be let go on account of the job cuts.
AWS’ coaching and certification unit was one of many teams to see cuts, based on a memo despatched out by division head Michelle Vaz and considered by CNBC.
Reuters was first to report on the layoffs.
In Might, Amazon reported a 3rd straight quarterly income miss at AWS. Gross sales elevated 17% to $29.27 billion within the first quarter, slowing from 18.9% in the prior interval.
Amazon mentioned the cuts weren’t primarily as a consequence of investments in synthetic intelligence, however are a results of ongoing efforts to streamline the workforce and refocus on sure priorities. The corporate mentioned it continues to rent inside AWS.
Amazon CEO Andy Jassy has been on a cost-cutting mission for the previous a number of years, which has resulted in additional than 27,000 staff being let go since 2022. Job reductions have continued this yr, although at a smaller scale than previous years. Amazon’s shops, communications, and gadgets and providers divisions have been hit with layoffs in current months.
AWS final yr minimize tons of of jobs in its bodily shops expertise and gross sales and advertising models.
Final month, Jassy predicted that Amazon’s company workforce might shrink even additional on account of the corporate embracing generative AI.
“We’ll want fewer individuals doing a number of the jobs which are being finished as we speak, and extra individuals doing different sorts of jobs,” Jassy advised staffers. “It is arduous to know precisely the place this nets out over time, however within the subsequent few years, we anticipate that this may cut back our complete company workforce.”