Amazon Trims AWS Workforce Amid AI-Driven Restructuring Amazon maintains that the latest layoffs are not solely the result of AI investments but are part of an ongoing internal review
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Amazon has cut hundreds of jobs from its Amazon Web Services (AWS) unit, the latest in a series of layoffs as the company reevaluates workforce needs in light of emerging technologies. The reductions, confirmed by the company, follow recent comments from CEO Andy Jassy, who signalled that generative AI would likely reduce the need for certain roles.
The layoffs affect multiple teams within AWS, including the training and certification group. Internal communications reviewed by media outlets revealed that affected employees were notified Thursday morning, with some reporting sudden loss of system access.
While Amazon declined to specify the exact number of roles eliminated, a spokesperson acknowledged that the decision was part of a broader strategy to "invest, hire, and optimise resources" to better serve customers. The company maintains that hiring will continue in some areas within AWS, despite the cuts.
AWS remains a critical business segment for Amazon, recording USD 29.3 billion in revenue for the first quarter of the year, a 17 per cent increase. The division's operating income also rose by 23 per cent, reaching USD 11.5 billion. However, even amid strong performance, the company is pursuing cost-efficiency and organisational streamlining.
In a recent internal memo, Jassy outlined how artificial intelligence is changing the nature of work across Amazon. He noted that while fewer people may be needed for certain tasks, new roles will emerge as AI becomes more embedded in operations. He urged employees to develop AI-related skills to stay aligned with the company's evolving needs.
This wave of job cuts is part of a wider corporate restructuring effort, aimed at reducing what Jassy has described as unnecessary layers of management. Over the past year, Amazon has scaled back teams across multiple divisions, including devices and services, books, and its Wondery podcast unit. Since 2022, the company has let go of more than 27,000 employees company-wide.
Amazon maintains that the latest layoffs are not solely the result of AI investments but are part of an ongoing internal review. "We didn't make these decisions lightly," spokesperson Brad Glasser said, adding that support will be provided to impacted employees.
The company has not yet detailed which additional units may face changes as AI continues to shape Amazon's long-term strategy.
