Amazon Cuts Hundreds of Jobs in Cloud Computing Unit AWS
Amazon, the tech giant, has made a tough decision to reduce jobs in its cloud computing arm, Amazon Web Services (AWS). The cuts will affect hundreds of roles, particularly in sales, marketing, and global services, as well as some positions in the team handling technology for its physical stores.
This move comes as AWS continues to grow, now making up 14% of Amazon's total revenue. Amazon's strategy has been shifting, especially with its physical stores like Amazon Fresh, which started in 2020. The company recently announced that it will be removing its self-checkout system, Just Walk Out, from all its stores.
An AWS spokesperson mentioned that these decisions are difficult but necessary as the company aims to invest, hire, and allocate resources effectively to bring innovation to its customers. Despite the job cuts, Amazon also stated that it remains committed to hiring and expanding, especially in key areas of its business. There are thousands of job openings, and efforts are being made to find new roles internally for affected employees.
The cuts will impact operations globally, though most AWS roles are based in Seattle, the company's home city. US-based employees affected by the layoffs will receive pay and benefits for at least 60 days, assistance in finding new employment, and access to health benefits during the transition. They will also be eligible for severance pay.
As of last year, Amazon had over 1.5 million full-time and part-time employees globally, excluding contractors and temporary workers. The company has been focusing on artificial intelligence (AI) through AWS, including recent investments in safety and research startup Anthropic.
It's worth noting that other tech giants, like Microsoft, are also investing heavily in AI development. In January, Amazon made similar job cuts across its subsidiaries Twitch, Prime Video, and MGM studios, affecting over 500 Twitch employees, which is a third of its workforce.
According to the US career consultancy Challenger, Gray & Christmas, the tech sector saw a significant increase in job cuts in 2023, with 168,032 jobs lost, a 73% rise from 2022.
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