AWS cloud services division
Amazon.com is initiating layoffs within its cloud services division due to a slowdown in sales growth, particularly in its most lucrative segment, Amazon Web Services (AWS). The job cuts are impacting AWS employees in the United States, Canada, and Costa Rica. The decision follows a broader trend of staff reductions across Amazon, with a total of 27,000 mostly corporate positions being eliminated.
AWS cloud services division
AWS, which is a major contributor to Amazon’s profits, has faced a deceleration in growth as corporate clients seek to cut expenses. The company had experienced significant hiring during the pandemic, resulting in an overstaffed situation. Earlier this year, Amazon implemented a round of job cuts, affecting approximately 18,000 workers. In March, an additional 9,000 layoffs were announced, with a focus on AWS, human resources, advertising, and the Twitch live streaming service. The recent job cuts have been executed in various areas, including Twitch and the video game group.
In an email to employees, AWS Chief Adam Selipsky acknowledged the challenges, stating, “It is a tough day across our organization.” The rapid expansion of AWS’s workforce during the pandemic, driven by increased demand for digital services, has prompted the need for a reevaluation of resources and a refocus on top priorities. Selipsky explained that some team members would shift to different projects, initiatives, or teams, while others would face role eliminations.
This move follows previous layoffs in AWS-related teams, such as recruiters and members of the “Just Walk Out” physical stores technology group, which was integrated into the division in a reorganization last year. While the majority of Amazon’s workforce consists of hourly employees handling product packing and shipping in warehouses, the company has approximately 350,000 corporate employees.
AWS cloud services division
Amazon’s financial results are eagerly awaited, with investors keen to assess the impact of cost-cutting measures on profitability and to gauge whether the slowdown in cloud services sales growth is reaching a stabilization point. Other major tech companies, including Meta Platforms Inc., Alphabet (Google’s parent company), Microsoft, Dell Technologies, and IBM, have also implemented workforce reductions in response to various market factors.
AWS cloud services division
Source: gulfbusiness
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