After Microsoft, Amazon has now laid off a significant chunk of its workforce. The e-commerce giant has directed the layoffs towards the cloud computing arm, Amazon Web Services (AWS), affecting at least hundreds of employees across various teams.
The move, confirmed by Amazon spokespersons, comes as part of the company’s ongoing efforts to streamline operations, optimise resources, and adapt to the increasing adoption of generative AI tools, as hinted by Amazon CEO Andy Jassy previously.
The layoffs, first reported by Reuters, follow a recent warning from Amazon CEO Andy Jassy, who indicated that the growing integration of AI would likely lead to a reduction in the corporate workforce. While Amazon has stated that the cuts are not solely driven by AI investments, they are part of a broader strategic review aimed at enhancing efficiency and aligning teams with evolving business priorities, says the company.
AWS employees laid off
Laid-off employees across AWS received termination emails on Thursday morning, followed by the immediate deactivation of their system access. While the exact number of affected individuals has not been disclosed by Amazon yet, sources suggest at least hundreds of roles at AWS have been asked to go.
Notably, the “specialists” group, responsible for assisting customers with new product ideas and selling existing services, was among the affected teams. The training and certification unit was also affected.
Despite these job reductions, AWS continues to be a highly profitable segment for Amazon, with sales rising 17 per cent year-over-year to $29.3 billion in the first quarter of 2025, and operating income increasing by 23 per cent to $11.5 billion. However, the company is facing growing competition from rivals like Microsoft Azure and Google Cloud.
Amazon to support displaced employees
Amazon has affirmed its commitment to supporting the affected employees through their transition, offering at least 60 days of pay and benefits, access to transitional health coverage, job placement assistance, and eligibility for severance. The company also stated that it is continuing to hire in core areas within AWS, indicating ongoing expansion in high-priority segments.
The layoffs at AWS align with a broader trend across the tech industry in 2025, with major companies like Microsoft, Meta, and Intel also undertaking major workforce reductions as these firms navigate shifting market conditions, manage rising costs, and increasingly integrate artificial intelligence into their operations.
