Amazon Web Services (AWS) announced on Wednesday that it has initiated a significant reduction in its workforce, eliminating several hundred roles across sales, marketing, and technical divisions.Â
This move marks the latest in a series of job cuts undertaken by its parent company, Amazon.com (AMZN.O).
The impacted roles span across AWS’ sales, marketing, and global services divisions, as well as the physical stores technology team, according to statements from the cloud-computing arm of Amazon.
An AWS spokesperson mentioned, “We’ve identified a few targeted areas of the organization we need to streamline.”
Amazon’s job cuts have been ongoing, with previous layoffs occurring in divisions such as Prime Video, healthcare, and the Alexa voice assistant unit.
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This trend reflects broader industry patterns, with major technology companies continuing significant job reductions that began in 2022, extending into 2024. According to Layoffs.fyi, over 57,000 workers have been laid off across 229 firms so far in the year.
The reduction within AWS’ 60,000-strong sales, marketing, and global services division is likely part of a larger restructuring effort under sales chief Matt Garman.
This move comes as Amazon’s cloud business faced a slowdown in growth last year amidst economic uncertainties.
Despite this, AWS has recently exhibited signs of stabilization, contributing to Amazon surpassing quarterly revenue expectations in February.
However, Amazon’s dominance as the leading cloud provider is facing challenges from competitors like Microsoft, which has made significant strides in leveraging generative artificial intelligence technology, notably through investments in companies such as OpenAI, the maker of ChatGPT.
