ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Amazon Implements Major Layoffs in Cloud Computing Division

Amazon Web Services (AWS) confirms significant job cuts affecting various departments.
PUBLISHED APR 4, 2024
Cover Image Source: A general view of signage showing the Amazon logo on a warehouse | Getty Images | Photo by John Keeble
Cover Image Source: A general view of signage showing the Amazon logo on a warehouse | Getty Images | Photo by John Keeble

In a recent development, Amazon's cloud computing arm, Amazon Web Services (AWS), has announced significant job cuts affecting hundreds of employees across its technology, sales, and marketing departments. The company confirmed this decision on Wednesday, emphasizing its commitment to streamlining operations while maintaining support for affected employees during their transition.

The Amazon Prime logo is displayed on the side of an Amazon delivery truck on June 21, 2023 in Richmond, California | Getty Images | Photo by Justin Sullivan
Image Source: The Amazon Prime logo | Getty Images | Photo by Justin Sullivan

"We’ve identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact," an Amazon Web Services spokesperson said in a statement. "We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition to new roles in and outside of Amazon."

The news of these layoffs was initially reported by GeekWire, shedding light on a strategic shift within AWS amid changing market dynamics. AWS, which has been a major revenue driver for Amazon, has witnessed a slowdown in sales growth in recent quarters, attributed partly to companies scaling back cloud spending amidst economic uncertainties.

Employees in the United States will be provided with a reassuring buffer as they navigate this transition. With a commitment to stability and support, Amazon has pledged to maintain regular pay and benefits for a minimum of 60 days, ensuring that employees have a financial safety net during this period of change.

Besides continued compensation and benefits, employees will have the opportunity to qualify for a severance package.

 A general view outside an Amazon UK Services Ltd Warehouse at Leeds Distribution Park on December 13, 2023 in Leeds, United Kingdom.|Getty Images| Photo by Nathan Stirk
Image Source: A general view outside an Amazon warehouse | Getty Images | Photo by Nathan Stirk

The layoffs particularly impact AWS' store technology team, responsible for innovations like the cashierless checkout systems deployed in Amazon's physical stores. This includes technologies such as Just Walk Out, Dash smart carts, and Amazon One palm-based payment systems.

The integration of the store technology team into AWS in 2022 marked a strategic shift within Amazon, emphasizing the convergence of retail and cloud computing technologies.

The decision to trim the store technology division stems from a broader strategic realignment, reflecting changes in the deployment of applications across Amazon's owned and third-party stores. Furthermore, this announcement follows a series of layoffs initiated by Amazon over the past year, affecting various business units like Twitch, Audible, Buy with Prime, and Prime Video, and MGM Studios.

Job seekers stand in line at the Hyatt booth setup at the Mega South Florida Job | Getty Images | Photo by Joe Raedle
Image Source: Job seekers stand in line at the Hyatt booth set up at the Mega South Florida Job | Getty Images | Photo by Joe Raedle

The company embarked on its largest layoff spree in history in 2022, culminating in the termination of over 27,000 jobs across diverse departments. Audible, the prominent online audiobook and podcast service, has disclosed plans to cut approximately 5% of its workforce.

CEO Bob Carrigan conveyed this message to employees via a memo, indicating that while the company remains robust, it confronts a progressively demanding business environment. 

As reported by the layoff-tracking website Layoffs.fyi, 7,528 employees across 48 tech companies have been laid off as of January 15. The recent layoffs serve as an indicator of another potentially challenging year ahead for the tech industry, following a wave of layoffs that affected tens of thousands of employees. In 2023, over 1,150 tech companies terminated employment for more than 260,000 individuals.

MORE ON MARKET REALIST
The old painting turned out to be an early piece from the renowned artist David Hockney.
4 hours ago
The player aced the tricky game of 'Gas Money' and, needless to say, she celebrated in style.
7 hours ago
Fans were shocked to see how the player couldn't solve one of the easiest puzzles in the show's history.
8 hours ago
The company, Scholly, entered the Shark Tank Hall of Fame as it gave a 60x return years later.
9 hours ago
After the contestant, Drew Carey broke the board further while trying to fix it...
1 day ago
As it so turned out, a crucial ruling from the judges led to a BIG win for the player.
1 day ago
When a guest brought a precious Charles Rohlfs chair, expert John Sollo confessed that he was nervous to appraise it.
1 day ago
The guest had no idea about the item being a Tiffany product and being embedded with a rare gem.
2 days ago
The host was baffled by the goof up that the contestant made between two words.
2 days ago
Carey showed that he has got the weapon of sarcasm, and he isn't afraid to use it.
2 days ago
Whatever the host was expecting, it was far away from what the contestant said on national TV.
2 days ago
The guest was surprised to learn more about the item he had actually found on the street for free.
2 days ago
After going through everything on the board, the player left Harvey in hysterics with his answer.
3 days ago
As it so turned out, the weird-looking floor lamp was a piece from a very famous studio.
3 days ago
Most contestants were consistently getting the answers wrong, and Harvey was worried about what was next.
4 days ago
Some claimed that they got the puzzle despite English being their second language.
4 days ago
The letter was written to a columnist in response to a piece taking a swipe at Sinatra.
4 days ago
In a special episode of Celebrity Family Feud, a WWE star decided to go for the one thing Harvey is known for.
4 days ago
Luck was shining for her as she was off to a flying start and won the car with a single card.
4 days ago
Sajak had a witty reply for the contestant who was fanboying over White during the game.
7 days ago