Amazon Cuts Hundreds of Roles in AWS Amid AI Impact and Restructuring

Amazon has reportedly laid off several hundred employees in its Amazon Web Services (AWS) cloud division, citing the growing impact of generative artificial intelligence. The layoffs follow Amazon CEO Andy Jassy's comments that AI would reduce the need for certain roles. Amazon has also announced job reductions in other units, including books, devices and services, Wondery, and stores and communications teams.

Amazon has reportedly laid off several hundred employees in its Amazon Web Services (AWS) cloud division, citing the growing impact of generative artificial intelligence. The layoffs follow Amazon CEO Andy Jassy's comments that AI would reduce the need for certain roles. Amazon has also announced job reductions in other units, including books, devices and services, Wondery, and stores and communications teams.

The job cuts took place on Thursday, just a month after Jassy warned that the adoption of generative AI tools would trigger a workforce reduction. An Amazon spokesperson confirmed the layoffs but did not disclose the exact number of employees affected. The company, which employed 1.6 million full- and part-time workers globally as of the end of March, now joins other major tech firms such as Microsoft, Meta, and CrowdStrike that have announced job cuts this year [1].

AWS sales rose 17% in the first quarter to $29.3 billion compared to a year earlier, while operating income increased 23% to $11.5 billion. Despite the job cuts, the division performed strongly in the first quarter [2]. The layoffs are part of a broader series of cost-cutting measures by Amazon, with the company's CEO focusing on reducing what he describes as an excess of bureaucracy and internal complexity [3].

Several employees told Reuters that they had received emails on Thursday morning informing them they had been let go and that their computers were being disabled. The total number of redundancies is unclear, but one group known as "specialists" was confirmed to be affected. These employees typically support customers with product development and promote AWS services [1].

These cuts are part of a broader series of layoffs at Amazon. The company has already made staff reductions in its books, devices and services segments, as well as its Wondery podcast unit. Amazon's stores, communications, and devices and services divisions have also been hit with layoffs in recent months [3].

Amazon's focus on AI-driven automation and streamlining its workforce is part of a broader trend in the tech industry. Many corporations are increasingly using AI to write software code and automate routine tasks, aiming to reduce costs and become less reliant on human workers [1, 2].

References:
[1] https://www.reuters.com/business/retail-consumer/amazons-aws-cloud-computing-unit-cuts-least-hundreds-jobs-sources-say-2025-07-17/
[2] https://www.business-standard.com/technology/tech-news/amazon-aws-job-cuts-cloud-layoffs-ai-automation-tech-microsoft-news-125071701537_1.html
[3] https://www.cnbc.com/2025/07/17/amazon-web-services-has-some-layoffs.html