Amazon has laid off several hundred employees from its Amazon Web Services (AWS) division, in another round of job cuts amidst efforts to streamline operations and shift its focus toward AI-led innovation. The latest workforce reductions, confirmed in mid-July, impact teams across AWS, especially in sales, marketing and global services roles.
These layoffs come shortly after Andy Jassy, CEO, indicated that adoption of generative AI could lead to shifts in workforce needs.
As more business processes get deeply automated, companies such as Amazon are adjusting team sizes and responsibilities to align with evolving technologies and customer demands.
Despite the job cuts, AWS remains a strong revenue driver for the company.
This is not the first time AWS has undertaken a headcount reduction. The division has seen multiple rounds of layoffs over the past two years, including a major one in 2023 that impacted 27,000 employees company-wide. Earlier this year in March 2025, Amazon also cut around 100 jobs in its Devices and Services unit.
The tech giant has continued making selective reductions across different departments in recent months, including its books division, the Wondery podcast team, and others. These changes are part of an effort to flatten internal hierarchies, simplify workflows, and invest in high-growth areas such as generative AI and automation technologies.
With over 1.6 million employees globally, Amazon’s strategic workforce realignment indicates AI is reshaping the talent landscape in tech.
