Amazon Web Services Conducts Layoffs, Citing AI-Driven Job Eliminations

Amazon Web Services is conducting layoffs, with the company not disclosing the number of jobs cut or where the reductions are taking place. Amazon said it is hiring in other areas and is offering support to the laid-off workers, including pay and benefits for 60 days and eligibility for a severance payment. The layoffs come as CEO Andrew Jassy has expressed expectations of workforce reductions due to the use of artificial intelligence.

Amazon Web Services (AWS) has confirmed layoffs within its cloud-computing unit, with the company declining to specify the number of jobs cut or the affected teams [1]. The layoffs come as CEO Andrew Jassy has expressed expectations of workforce reductions due to the integration of artificial intelligence (AI) [2].

According to internal Slack messages, the cuts include frontline support, training and certification, and the AWS Worldwide Specialist Organization, which works with customers and product teams [1]. Amazon spokesperson Brad Glasser stated that the decisions were made to optimize resources and focus on delivering innovation for customers [1].

The layoffs are part of a broader cost-cutting mission by Amazon, which has seen over 27,000 employees let go since 2022 [2]. AWS has continued to lay off employees this year, though at a smaller scale than preceding years [2]. The company has also experienced revenue misses at AWS, with sales increasing by 17% in the first quarter of 2025, slowing from 18.9% in the prior period [2].

Amazon has offered support to the laid-off workers, including pay and benefits for at least the next 60 days and eligibility for a severance payment [1]. The company continues to hire in other areas, indicating a strategic refocusing of resources [2].

Amazon's layoffs are part of a trend in the tech industry, with other companies like TechTarget announcing workforce reductions. TechTarget, for instance, announced a reorganization plan expected to result in a ~10% reduction in its global workforce [3].

References:
[1] https://www.businessinsider.com/amazon-workers-are-piecing-together-cloud-cuts-in-internal-messages-2025-7
[2] https://www.cnbc.com/2025/07/17/amazon-web-services-has-some-layoffs.html
[3] https://seekingalpha.com/news/4467894-techtarget-trades-lower-amid-10-workforce-reduction-announcement

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