Amazon AWS cloud computing division lays off staff

Amazon AWS cloud computing division lays off staff

Amazon Web Services (AWS), a subsidiary of Amazon, has announced job cuts within its cloud computing division, following a trend of layoffs by major tech firms. The layoffs were confirmed by Reuters on July 17, 2025, and come amidst a broader shift towards AI-driven automation [1].

AWS sales and operating income rose in the first quarter, with sales increasing by 17% to $29.3 billion and operating income rising by 23% to $11.5 billion [2]. However, the company has decided to eliminate some roles across particular teams in AWS to optimize resources and deliver innovation for its customers [1].

The layoffs, which took place on Thursday, affect several groups within AWS, including "specialists" who support customers with product development and promote AWS services [1]. While the exact number of redundancies is unclear, Amazon has confirmed that multiple teams were impacted [2].

This move is 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 [2]. Amazon CEO Andy Jassy has been on a cost-cutting mission, aiming to reduce what he sees as unnecessary layers of management and internal complexity [1].

The layoffs come as Amazon continues to invest in and hire within AWS, indicating that the company is not solely focused on cost-cutting but also on strategic realignment and innovation [1]. Amazon's embrace of generative AI tools is expected to lead to further changes in the workforce, with Jassy predicting that the company's corporate workforce could shrink as a result [1].

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