Amazon to cut hundreds of jobs in AWS division
By Josh White
Date: Thursday 04 Apr 2024
(Sharecast News) - Amazon's cloud computing arm, Amazon Web Services (AWS), announced significant layoffs affecting hundreds of employees overnight on Thursday, in its physical stores technology and sales and marketing sectors.
The decision came as part of a strategic realignment to prioritise key areas of focus within the company, according to a statement from an AWS spokesperson quoted by CNBC.
It followed a recent slowdown in sales growth for AWS, attributed to companies scaling back their cloud spending amid increasing interest rates.
The layoffs within the store technology team coincided with Amazon's decision to remove checkout-free 'just walk out' systems from its Amazon Fresh grocery stores in the US.
It has made no announcements about the future of such systems in its Amazon Fresh stores in the UK and other markets.
The technology, along with others such as Dash smart carts and Amazon One palm-based payment systems, come under the purview of its AWS division.
According to the AWS spokesperson, the restructuring within the store technology division reflected a broader shift in the use of applications within both Amazon-owned and third-party retail outlets.
Amazon's newest round of layoffs added to a series of workforce reductions since the end of 2022, totaling more than 27,000 job cuts across various areas of the company.
Recent layoffs had affected divisions including Twitch, Audible, Buy with Prime, and its Prime Video and MGM Studios entertainment divisions.
Reporting by Josh White for Sharecast.com.
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