As per recent media reports, Amazon has announced significant layoffs within its cloud computing arm, AWS. Reportedly, AWS is undergoing substantial restructuring, resulting in the termination of hundreds of employees across its physical stores, technology, sales, and marketing divisions.
The news has been confirmed by the company stating that these layoffs reflect a strategic realignment towards key focus areas. Furthermore, it’s a part of the company’s endeavour to align with its future priorities, reducing any duplication and inefficiency in roles.
While the company is committed to assisting affected employees in transitioning to new roles, these layoffs coincide with broader shifts in application usage within Amazon-owned and third-party stores. Despite the challenges, employees impacted by the recent layoffs in the US will receive pay and benefits for at least 60 days, with eligibility for severance packages.
Furthermore, AWS will try to identify internal opportunities for affected employees, considering the company’s numerous vacancies. Additionally, Amazon intends to continue hiring in other segments of its business.
These job cuts mark another phase in Amazon’s ongoing restructuring efforts, which began with significant layoffs in 2022 and persisted into 2023, affecting various business units such as Twitch, Audible and Prime Video. The cuts align with Amazon’s broader workforce- reduction strategy, including a five per cent reduction earlier this year in the “Buy with Prime” division.
In the preceding month, reports surfaced regarding hundreds of layoffs within Amazon’s Pharmacy and One Medical divisions. Neil Lindsay, head of Amazon Health Services, confirmed the restructuring in a memo to employees, citing a commitment to enhancing customer experiences and fostering innovation.