Amazon AWS Layoffs Amid AI Advances and 17% Revenue Surge

Amazon Web Services (AWS), the cloud-computing arm of Amazon, has commenced a series of layoffs, as confirmed by Amazon spokesperson Brad Glasser. The company has not disclosed the specific teams affected or the exact number of employees impacted. However, internal communications via Slack indicate that the layoffs have reached teams involved in frontline support, training and certification, and the AWS Worldwide Specialist Organization. These roles span marketing, analytics, and areas related to generative AI.

CEO Andy Jassy notified employees about the decision, stating that advancements in artificial intelligence (AI) would lead to a reduction in workforce over time due to efficiency gains. Nonetheless, Amazon maintains that AI was not the primary cause for these layoffs. The company maintains thousands of open roles in strategic areas despite the ongoing cuts.

In response to the layoffs, Amazon offers U.S.-based employees continued pay and benefits for at least 60 days and eligibility for severance payments. The criteria for severance eligibility remain undisclosed.

The layoffs come as AWS sustains its leadership in the global cloud market, commanding a 29 percent share as of the first quarter of 2025, while generating $29.3 billion in sales—a 17 percent increase from the previous year. AWS employees have turned to professional networks such as LinkedIn to announce their job status, with several in marketing roles publicly acknowledging the impact.

Despite AI's increasing role in transforming workflows, which Jassy referenced as a means to reduce manual tasks and foster strategic thinking, concerns about job security and AI's energy consumption persist. Concerns are amplified by the massive infrastructure needed to support AI capabilities, including data centers that significantly contribute to carbon emissions.

Overall, the current restructuring reflects a shift towards optimizing resources within Amazon, judging by its continued investment and hiring in areas of strategic priority.