Amazon Web Services (AWS), the global cloud computing leader and a major part of Amazon’s business, has announced job cuts impacting some teams. This move is part of an ongoing restructuring effort by Amazon, aligning with its wider strategy to optimize operations and reallocate resources. The layoffs follow earlier signals from Amazon CEO Andy Jassy about potential workforce reductions due to the rising adoption of artificial intelligence (AI) tools and a focus on streamlining operations.
Key Takeaways:
- Amazon’s AWS unit is reducing some roles across specific teams.
- These layoffs are part of Amazon’s broader strategy to streamline operations and invest in key areas.
- While AI plays a role in the company’s long-term workforce plans, Amazon states these specific AWS cuts are not primarily driven by AI adoption.
- Affected employees are receiving support, including pay, benefits, and job placement assistance.
- AWS remains a financially strong division for Amazon, despite a recent slowdown in its revenue growth rate.
The exact number of employees affected by the latest AWS layoffs has not been disclosed by Amazon. However, reports from reliable sources suggest that at least hundreds of jobs have been impacted. Teams like the “specialists” group, which works with customers on new product ideas and sells existing services, are among those reportedly affected. An Amazon spokesperson confirmed the job cuts, stating, “After a thorough review of our organization, our priorities, and what we need to focus on going forward, we’ve made the difficult business decision to eliminate some roles across particular teams in AWS.” The company added that these decisions are “necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”
These reductions at AWS come after Amazon CEO Andy Jassy indicated in a June memo that the company expects a gradual reduction in its corporate workforce over the next few years. This reduction is primarily driven by Amazon’s increasing use of AI and automation to handle internal tasks more efficiently. While Jassy’s comments highlighted AI’s long-term impact on the workforce, Amazon has clarified that the current AWS layoffs are a result of a broader organizational review and not solely due to AI integration.
Amazon is offering support to impacted employees in the U.S., which includes at least 60 days of pay and benefits, access to transitional health coverage, job placement assistance, and eligibility for severance packages. The company has also stated its effort to help affected workers find other roles within Amazon where possible. Despite these layoffs, Amazon continues to hire for critical roles, with thousands of open positions still available across AWS.
This wave of layoffs at Amazon is part of a larger trend seen across the tech industry in 2025. Several major tech firms, including Microsoft, Meta, and Intel, have also announced workforce reductions this year. Companies are reevaluating their staffing needs to adapt to shifting market conditions and to prioritize investments in areas like artificial intelligence.
AWS remains a cornerstone of Amazon’s financial success. In the first quarter of 2025, the cloud division reported $29.3 billion in revenue, with operating profits reaching $11.5 billion. However, its year-over-year revenue growth rate of 16.9% was the lowest in over a year. This indicates a potential deceleration in the cloud computing market, even as AWS continues to lead the global cloud infrastructure services market. Amazon’s overall strategy includes substantial investment in AI infrastructure, with plans to spend over $100 billion on data centers in the coming decade, further emphasizing the company’s focus on cloud computing and AI.
Related FAQs:
Q1: Why is Amazon cutting jobs in AWS?
A1: Amazon is cutting jobs in AWS as part of a strategic review to streamline operations and reallocate resources to align with current business priorities and investments. This follows a broader trend of efficiency drives and AI integration across the company.
Q2: Are these AWS layoffs happening due to AI?
A2: Amazon has stated that while AI is influencing its long-term workforce plans, these specific AWS layoffs are not primarily driven by AI. They are a result of a comprehensive organizational review.
Q3: Which teams within AWS are affected by the layoffs?
A3: While Amazon has not specified all affected teams, reports indicate that groups like the “specialists” who work with customers on product ideas and sales have been impacted.
Q4: What kind of support is Amazon offering to laid-off employees?
A4: Amazon is providing affected U.S. employees with at least 60 days of pay and benefits, access to transitional health coverage, job placement assistance, and eligibility for severance. They are also trying to find internal roles for impacted workers.
Q5: Is Amazon still hiring in AWS despite the layoffs?
A5: Yes, Amazon is still actively hiring for thousands of critical roles across AWS, even as it conducts these layoffs in specific areas.
