FX.co ★ Amazon To Cuts Hundreds Of Jobs In AWS Division

Amazon Web Services (AWS), the cloud computing arm of Amazon.com Inc., has unveiled plans to trim its employee count. The job cuts are slated to primarily affect physical stores technology as well as sales and marketing departments within the division.

An AWS representative emphasized that the layoffs would help the organization streamline operations and focus resources on pivotal strategic areas that promise maximum impact. The company affirmed its dedication to aiding the employees affected by this downsizing, offering support as they transition to different roles within Amazon or elsewhere.

The reduction in staff comes as part of a broader strategic shift within AWS to adjust their concentration based on changing market dynamics. Recently, AWS has noticed a dip in sales growth, potentially linked to companies reducing their cloud expenditure in the context of increasing interest rates.

Simultaneously, the layoffs coincide with Amazon's move to discontinue cashierless checkout systems in its U.S. Fresh stores. The teams impacted supervised various technologies, including the cashier-free "Just Walk Out," Dash smart carts, and the Amazon One palm-based payment system.

This decision is in line with previous job cuts conducted by Amazon across different departments in late 2022, resulting in more than 27,000 job losses. This year, the layoffs have targeted employees in several units including Twitch, Audible, Buy with Prime, Prime Video, and MGM Studios.

In terms of compensation, affected U.S. employees will receive their salary and benefits for a minimum period of 60 days and will also be eligible for severance packages.