Amazon eliminates hundreds of cloud computing positions

Amazon recently decided to reduce its workforce in the cloud computing division, impacting a significant number of employees.

According to its latest financial report, Amazon Web Services (AWS) has experienced significant growth and now accounts for 14% of Amazon's total revenue.

The company has been adjusting its strategy by introducing physical stores, such as Amazon Fresh, launched in 2020.

It was announced on Tuesday that the company will discontinue its self-checkout system, Walk Out, in all its stores.

The company announced that the most recent round of layoffs will affect hundreds of positions in sales, marketing, global services, and the technology team responsible for its physical stores.

"These decisions are challenging yet essential as we persist in making investments, expanding our workforce, and streamlining resources to drive innovation for our valued customers," an AWS spokesperson informed.

The firm also mentioned its commitment to hiring and expanding, particularly in critical areas of its business. It emphasised the availability of numerous job openings and its efforts to identify internal opportunities for employees impacted by role changes.

Amazon announced that it will implement cuts in its operations globally, with a focus on its home city of Seattle, where the majority of AWS roles are located.

The company has announced that employees based in the US will be provided with pay and benefits for a minimum of 60 days. They will also receive assistance in finding alternative employment and access to transitional health benefits. In addition, they will be entitled to receive severance pay.

After the previous year, Amazon boasted over 1.5 million employees, encompassing both full-time and part-time positions, except for contractors and temporary personnel.

Amazon has been actively pursuing artificial intelligence (AI) through AWS, recently investing in Anthropic, a start-up specialising in safety and research.

Major players in the tech industry, such as Microsoft, are actively vying to enhance their AI capabilities.

In January, Amazon eliminated many positions within its subsidiaries, including Twitch, Prime Video, and MGM Studios. Unfortunately, over 500 employees at Twitch, which accounts for a significant portion of the streamer's workforce, were let go.

In 2023, the tech sector saw a significant increase in job cuts, with 168,032 positions being eliminated. This marked a 73% rise compared to the previous year, according to US career consultancy Challenger, Grey & Christmas.