Attendees stroll via an exposition corridor at AWS re:Invent, a convention hosted by Amazon Net Companies, in Las Vegas on Dec. 3, 2024.
Noah Berger | Getty Pictures
Amazon is shedding some staffers in its cloud computing division, the corporate confirmed Thursday.
“After an intensive evaluation of our group, our priorities, and what we have to give attention to going ahead, we have made the tough enterprise choice to eradicate some roles throughout specific groups in AWS,” Amazon spokesperson Brad Glasser mentioned in a press release. “We did not make these selections flippantly, and we’re dedicated to supporting the staff all through their transition.”
The corporate declined to say which items 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, in accordance with a memo despatched out by division head Michelle Vaz and seen 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 because 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 12 months, although at a smaller scale than previous years. Amazon’s shops, communications, and units and companies divisions have been hit with layoffs in latest months.
AWS final 12 months minimize a whole lot of jobs in its bodily shops know-how and gross sales and advertising and marketing items.
Final month, Jassy predicted that Amazon’s company workforce may shrink even additional on account of the corporate embracing generative AI.
“We are going to want fewer individuals doing a few of the jobs which might be being performed at this time, and extra individuals doing different varieties of jobs,” Jassy instructed staffers. “It is exhausting to know precisely the place this nets out over time, however within the subsequent few years, we anticipate that it will scale back our whole company workforce.”
