Amazon Web Services (AWS) has experienced growth and now constitutes 14% of Amazon's overall revenue. The company has been altering its approach with physical stores, such as Amazon Fresh, which were introduced in 2020. 

On Tuesday, it announced plans to discontinue its self-checkout system known as Just Walk Out from all its stores. The company stated that the recent workforce reductions impact several hundred positions in sales, marketing, global services, and a few hundred roles within its physical stores technology team. 

According to BBC, AWS stated that while these decisions are challenging, they are essential as the company continues to invest, recruit, and streamline resources to drive innovation for its customers. Furthermore, the company affirmed its commitment to ongoing recruitment and expansion, particularly in key areas of its operations. 

It mentioned that numerous job opportunities are available, and efforts are being made to identify internal roles for employees affected by the changes. Amazon announced that the job cuts will affect its operations globally, with a significant portion of AWS roles located in its headquarters in Seattle. 

US-based employees impacted by the layoffs will receive pay and benefits for at least 60 days, assistance in finding new employment, and access to transitional health benefits. They will also be eligible for severance pay. 

As of the end of last year, Amazon employed over 1.5 million full-time and part-time workers, excluding contractors and temporary staff. The company has been directing its focus towards artificial intelligence (AI) through AWS, recently investing in safety and research startup Anthropic. 

This move aligns with the broader trend among technology giants like Microsoft, which have been actively enhancing their AI capabilities. In January, Amazon made headlines for axing hundreds of jobs across its subsidiaries Twitch, Prime Video, and MGM studios. 

Particularly, over 500 employees at Twitch, constituting a third of its workforce, were laid off. According to US career consultancy Challenger, Gray & Christmas, the tech sector witnessed a significant increase in job cuts in 2023, totaling 168,032 - a staggering 73% rise compared to 2022.