Amazon Cuts Jobs At AWS Amid Strategic Restructuring And Growth Slowdown

(RTTNews) - Amazon has confirmed job cuts within its cloud computing division, Amazon Web Services, as part of a broader effort to streamline operations and prioritize growth areas.

While the company did not disclose the number of roles eliminated or the specific teams impacted, internal communications suggest layoffs affected groups including frontline support, training and certification, and the AWS Worldwide Specialist Organization, which collaborates with customers and product teams.

"These decisions follow a thorough review of our organization, priorities, and future focus," said Amazon spokesperson Brad Glasser. "We didn't make these choices lightly and remain committed to supporting impacted employees through their transition." U.S.-based staff will continue receiving pay and benefits for at least 60 days and will be eligible for severance packages, the company said.

The reductions come after AWS reported its third consecutive quarterly revenue slowdown. First-quarter sales rose 17% to $29.3?billion, compared to an 18.9% increase in the previous quarter.

CEO Andy Jassy, who has overseen more than 27,000 layoffs since 2022, recently cautioned that advances in generative AI will likely shrink Amazon's corporate workforce overtime as automation drives efficiency though the company continues to hire in high-priority areas.

Glasser stressed that the cuts were not primarily driven by AI but are part of an ongoing strategy to optimize resources. "We're still investing heavily in AWS and hiring for roles that will drive innovation for our customers," he said.

The move underscores Amazon's challenge of balancing cost controls with its push to maintain leadership in a competitive cloud market while scaling new AI-driven services.