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Amazon Cuts Hundreds Of Jobs In Cloud Computing

By Nithya Bose in Amazon News, posted April 4, 2024

Amazon is cutting hundreds of jobs from its cloud-computing unit, Amazon Web Services, in a move to save money.

The layoffs cover sales, marketing, global services within AWS, and the tech team responsible for Amazon's cashierless checkout technologies.

An AWS spokesperson said the company plans to hire within its core business areas.

They said: “These decisions are difficult but necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”

Its cloud computing unit accounted for a major portion of Amazon’s profits but recently saw slow demand as corporate clients limited their spending.

Despite this, Amazon has been actively investing in artificial intelligence.

It injected $4 billion into AI firm Anthropic and secured a commitment from Anthropic to utilize AWS's cloud services extensively over the coming years.

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Several big tech companies have reduced their workforces in response to economic pressures.

Amazon has made cuts across various departments to streamline operations, including its entertainment and gaming sectors.

However, the company’s headcount has drastically climbed since the pandemic began, nearly doubling.

Those affected by the recent layoffs will receive continued pay and benefits for at least 60 days and severance packages.

Earlier this week, Amazon announced it is discontinuing its "Just Walk Out" technology in Amazon Fresh grocery stores across the US.

The company plans to look for alternative cashierless solutions.

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