Amazon to cut hundreds of jobs in AWS cloud computing unit

Amazon has said it is cutting hundreds of jobs in its AWS cloud computing unit as part of a strategic shift.

The company aid it is axing “a few hundred roles” in the team that oversees technology used in its physical stores, and follows the announcement that it is ending its use of its self-service checkout “just walk out” tech in grocery stores in the US.

The tech giant said it is also cutting several hundred roles in the sales, marketing and global service teams at AWS.

“These decisions are difficult but necessary as we continue to invest, hire and optimise resources to deliver innovation for our customers,” AWS said in a statement.

It added that it will continue to hire in other, priority areas and that it has thousands of AWS job openings posted online.

The company has not said in which countries the layoffs will take place, but said it will also try to find internal opportunities for employees whose roles are affected.

Lee Sustar, principal analyst at research and advisory firm Forrester, said changing economic factors post-pandemic and the rise of artificial intelligence are likely factors in Amazon’s decision.

“AWS has been adapting to customers’ cost-cutting efforts following the spike in cloud IT spending during the pandemic, assisting them in that process,” he said.

“The resulting moderation of demand is a factor in these layoffs as well as enterprise cloud spending on AI flowing to Microsoft Azure, challengers like Oracle Cloud Infrastructure, and new AI-focused cloud companies.”

The cuts follow previous layoffs announced in January across Amazon’s Prime Video and MGM Studios unit, with streaming service Twitch, also owned by Amazon, cutting more than 500 jobs in the same month to save on costs.

It continued an ongoing trend of job cuts in the tech sector over the last 18 months, with thousands of layoffs across many of the industry’s biggest firms.