Amazon Fires Hundreds Of Employees In Cloud Computing Division Layoffs

New Delhi: In a cost-cutting measure, Amazon has garnered attention for its ongoing layoffs across various departments. Following reports of stagnant base pay for senior employees, the tech giant has now announced the dismissal of hundreds of employees from its cloud computing division, Amazon Web Services (AWS).

Restructuring At Amazon Web Services

Reports indicate that Amazon Web Services is going through restructuring. This strategic realignment aims to refocus efforts on key areas, according to a spokesperson from AWS. (Also Read: Customer Get Delayed Food Delivery On Tuesday, Swiggy Blames 'Weekend Peak Hour', Chat Goes Viral)

Which Department's Employees Will Be Impacted?

This move resulted in the termination of hundreds of employees across its physical stores' technology, sales, and marketing divisions. (Also Read: Security Alert For Android Users! Indian Govt Issued High-Risk Warning: Read More)

What Officials Said About Ongoing Challenges?

Matt Garman, AWS senior vice president, acknowledged the difficulty of these decisions, stating, "Change can be difficult." Garman shed light on the company's need to remain agile in a rapidly evolving industry.

"We operate in an incredibly fast-moving industry, and it is important that we stay agile as an organisation. The changes we are making are preparing the organisation for the future, aligning with our strategy and priorities, and reducing duplication and inefficiency. I recognise the effect this has on every individual impacted," he added.

Dilip Kumar, Vice President of AWS Applications, addressed affected employees, mentioning that layoffs would impact teams handling identity and checkout functions within the Physical Stores Technology organization at AWS.

"We've learnt a lot through the launch of identity and checkout technologies in our large format Amazon Fresh stores, and have good customer feedback to inform our plans going forward. We are also expanding our identity and checkout technologies in smaller-format 1P [first-party] stores, and growing our third-party locations," he added.

Previous Layoffs

These layoffs are the latest in Amazon's ongoing restructuring efforts, which began with substantial layoffs in 2022 and continued into 2023, affecting various business units, including Twitch, Audible, and Prime Video.