Amazon Announces Job Cuts at AWS
In a bold move, technology behemoth Amazon has made the decision to cut hundreds of jobs within its cloud computing business, Amazon Web Services (AWS).
As AWS continues to grow, now representing a significant 14% of Amazon’s total revenue, the company has been forced to reevaluate its strategy, particularly in light of the expansion into physical stores with Amazon Fresh, launched in 2020.
One notable change includes the removal of the self-checkout system, Just Walk Out, from all stores – a decision that has undoubtedly impacted the recent job cuts.
According to an AWS spokesperson speaking to the BBC, the job cuts will affect several hundred roles in sales, marketing, global services, and a few hundred positions within the physical stores technology team.
The spokesperson emphasized the necessity of these decisions, stating, “These decisions are difficult but necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”
Despite the job cuts, Amazon reassured its commitment to growth, especially in core business areas, with thousands of job opportunities still available. The company is actively working to find internal opportunities for affected employees.
While the cuts will impact operations globally, the majority of AWS roles are based in Seattle, the company’s home city. US-based employees affected by the cuts will receive pay and benefits for at least 60 days, assistance in finding new employment, access to transitional health benefits, and eligibility for severance pay.
With a total of over 1.5 million full-time and part-time employees as of last year, Amazon has been strategically focusing on artificial intelligence (AI) through AWS. This includes recent investments in safety and research start-ups like Anthropic.
Interestingly, Amazon’s move comes at a time when tech giants such as Microsoft are aggressively investing in AI capabilities. Amazon itself recently made headlines for axing hundreds of jobs across subsidiaries like Twitch, Prime Video, and MGM studios.
According to US career consultancy Challenger, Gray & Christmas, the tech sector saw a significant increase in job cuts in 2023, up 73% compared to the previous year. The competitive landscape in tech is rapidly evolving, with companies vying to stay ahead in the AI race. — BBC
