Tech layoffs: Amazon Web Services (AWS) division gave hundreds of employees the pink slip from its cloud unit earlier this week. The major wave of job cuts comes just weeks after CEO Andy Jassy stated that AI will likely reduce the need for certain roles across Amazon. Analyst Amanda Goodall, who uses the handle “@thejobchick” on X(formerly Twitter) predicted that further job cuts are expected towards the end of this year.
Several teams within AWS were affected across all levels, including the training and certification unit.
Predicted layoffs analysis
Goodall’s predictions suggest a 10% cut in roles overall across AWS, with nearly 25% layoffs in the L7 (principal-level) roles under close scrutiny. Factors like a high attrition rate managed by performance improvement plans (PIP) and reduction in force (RIF) have been identified as the root cause for these some-to-come layoffs.
The drivers behind these anticipated layoffs appear to be multi-layered. These moves may reflect broader shifts in the cloud and infrastructure market, where intense competition, margin pressures, and the push towards AI-driven efficiency are forcing companies to reassess headcounts and skill alignments.
Rumor of more layoffs at AWS:
– 10% cut expected by year-end
– 25% of L7s (Principal-level) on the chopping block
– Managed via RIFs, PIPs, attrition, not headlinesModeling already baked into OP1 planning.
Working to confirm more on this as this may include the Bedrock GTM…
— Amanda Goodall (@thejobchick) July 19, 2025
In AWS’s case, targeting senior principal-level roles suggests a deliberate effort to flatten hierarchies and optimise costs, especially as these positions tend to command some of the highest compensation packages.
AI layoffs at Amazon
Internal reports from Amazon suggest that AI tools and agents are being periodically increased, which are rapidly replacing jobs done by former employees. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” wrote CEO Jassy. This round of layoffs also streamlines a company’s change in structure and cuts back on “excess bureaucracy”, as per Jassy.
“We’ve made the difficult business decision to eliminate some roles across particular teams in AWS. These decisions are necessary as we continue to invest, hire, and optimise resources to deliver innovation for our customers,” a company spokesperson said.
The layoffs have come in not only in the cloud services, but across the devices and services division, the books business, and the Wondery podcast group. At the same time, Amazon has, however, refuted a complete takeover by AI and related investments but cited a broader organisational review.
A memo, as per a Reuters report, suggested that the employees received the termination email on Thursday, July 17. After receiving the emails, the systems of the employees were deactivated. On the other hand, Amazon’s cloud services had a reported revenue of $29.3 billion, attributed to a 17% rise in sales.