Tech giant Amazon has announced job cuts at its cloud computing business, Amazon Web Services (AWS), which will impact hundreds of employees. The latest financial report indicates that AWS now contributes 14% to Amazon’s revenue. In a strategic shift, the company has focused on physical stores, including its Amazon Fresh concept launched in 2020.
One notable move is removing its self-checkout system, Walk Out, from all stores. The job cuts primarily affect roles in sales, marketing, global services, and the physical store’s technology team. An AWS spokesperson stated that these decisions, while difficult, are necessary to optimize resources and deliver innovation.
However, Amazon assures it will continue hiring and growing, particularly in core business areas. The company actively seeks internal opportunities for affected employees and emphasizes the availability of thousands of job openings. The job cuts will be implemented worldwide, with a significant concentration of AWS roles in Seattle, the company’s home city.
US-based employees will receive at least 60 days of pay and benefits, assistance in finding new employment, access to transitional health benefits, and eligibility for severance pay. As of the end of 2023, Amazon employed over 1.5 million full-time and part-time workers, excluding contractors and temporary staff.
Amazon’s strategic focus includes investments in artificial intelligence (AI), such as its recent safety and research start-up Anthropic backing. This aligns with the broader competition among tech giants, including Microsoft, to enhance their AI capabilities. In January, Amazon also executed job cuts across subsidiaries Twitch, Prime Video, and MGM studios, affecting hundreds of employees.
