Amazon confirms AWS layoffs; impact details remain undisclosed

Amazon has confirmed that it is laying off an unspecified number of employees within its cloud computing division, Amazon Web Services (AWS), as part of an internal review of its business priorities.

The announcement, first reported by Reuters on Thursday, was later confirmed by Amazon spokesperson Brad Glasser in a statement shared with CNBC. “After a thorough review of our organisation, our priorities, and what we need to focus on going forward, we’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” said Glasser. “We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition.”

Amazon did not disclose the number of roles affected or identify all the teams impacted. However, according to CNBC, an internal memo from Michelle Vaz, who leads AWS’s Training and Certification unit, confirmed that her department was among those facing job reductions.

The latest round of layoffs follows a slowdown in AWS growth, which was reflected in Amazon’s first-quarter earnings report released in May. AWS revenue rose 17% year-on-year to $29.27 billion, a deceleration from the 18.9% growth recorded in the previous quarter. Although AWS remains Amazon’s most profitable segment, it is facing growing competition from rivals including Microsoft Azure and Google Cloud.

According to Amazon, the layoffs are not directly linked to its growing investment in artificial intelligence. Instead, they form part of the company’s broader effort to streamline operations and refocus resources, particularly within AWS, which continues to evolve rapidly in line with customer demand and technological change.

Despite the cuts, Amazon stated that hiring remains ongoing in other parts of AWS, signalling that the division is still expanding in areas deemed high priority.

The company has been in the midst of a significant restructuring under CEO Andy Jassy, who took over the helm from Jeff Bezos in 2021. Since late 2022, Amazon has laid off more than 27,000 employees across a number of business lines, including its retail, communications, and devices and services divisions.

AWS itself previously underwent layoffs in 2023, which impacted teams working on physical stores technology and within its sales and marketing units.

Last month, Jassy hinted at further shifts in Amazon’s workforce strategy during internal communications with employees, also reported by CNBC. Speaking about the impact of generative AI, he said the company’s evolving use of technology could lead to reductions in some roles, while creating demand in others.

“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy reportedly told staff. “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.”

While Jassy’s remarks did not directly reference the AWS layoffs, they align with the company’s broader approach to automation, efficiency, and long-term talent planning.

The latest cuts are part of a broader pattern across the global technology sector, where a mix of post-pandemic correction, macroeconomic caution, and the fast-paced adoption of AI is reshaping workforce structures. While some companies are using AI to directly replace roles, Amazon’s current strategy appears more focused on internal rebalancing and operational streamlining.

Amazon has reiterated its commitment to supporting affected staff, although it has not disclosed details on severance or redeployment support.

The company is expected to provide more clarity on its hiring and workforce plans during its upcoming earnings call later this quarter.