Technology behemoth Amazon has revealed plans for job reductions impacting numerous employees within its cloud computing division.
Amazon Web Services (AWS) has experienced significant growth, now constituting 14% of Amazon’s overall revenue, as per its recent financial disclosure.
The corporation has been altering its approach with physical outlets, such as Amazon Fresh, introduced in 2020.
On Tuesday, it disclosed intentions to discontinue its self-checkout system, Just Walk Out, from all stores.
The company indicated that the latest job cuts would affect several hundred positions in sales, marketing, global services, and a few hundred roles within its physical stores technology unit.
“Such decisions are challenging yet imperative as we persist in investing, recruiting, and optimizing resources to foster innovation for our clientele,” stated an AWS spokesperson.
Moreover, the company emphasized its commitment to “continually hiring and expanding, particularly in fundamental sectors of our operation,” noting the availability of thousands of job opportunities and efforts to identify internal roles for impacted employees.
Amazon clarified that the layoffs would occur across its global operations, with the majority of AWS positions situated in its headquarters in Seattle.
In relation to employees based at Amazon Web Services, the company pledged at least 60 days of pay and benefits, assistance in securing alternative employment, access to transitional healthcare coverage, and eligibility for severance pay.
As of the conclusion of last year, Amazon boasted a workforce exceeding 1.5 million individuals, encompassing both full-time and part-time personnel, excluding contractors and temporary workers.
The tech giant has been directing its attention towards artificial intelligence (AI) via AWS, including recent investments in safety and research startup Anthropic.
Notably, major technology players, including Microsoft, which has invested in ChatGPT, are engaged in fierce competition to bolster their AI capabilities.
In January, Amazon initiated mass layoffs across its subsidiaries Twitch, Prime Video, and MGM studios. Over 500 Twitch employees, representing a third of the platform’s workforce, were affected.
According to US career consultancy Challenger, Gray & Christmas, the tech sector witnessed a surge in job reductions, totaling 168,032 in 2023, marking a 73% increase compared to the previous year.
