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Amazon: Big Tech Company Lays Off Hundreds of Employees in Cloud Computing Division

Amazon, a global technology giant, has announced significant job cuts that will affect hundreds of employees in its cloud computing business. The company is shifting its focus from digital services to physical stores such as Amazon Fresh, which were launched in 2020. On Tuesday, Amazon announced it would be removing its self-checkout system, Just Walk Out, from all its stores.

The job cuts will impact several hundred roles in sales, marketing, and global services as well as a few hundred roles in its physical stores technology team. An AWS spokesperson told the BBC that these decisions are difficult but necessary as the company continues to invest, hire and optimize resources to deliver innovation for its customers. However, Amazon also stated that it will continue to hire and grow especially in core areas of its business with thousands of jobs available and efforts to find internal opportunities for affected employees.

The cuts will take place at Amazon’s operations worldwide with most of the AWS roles based in Seattle. US-based employees affected by the job cuts will receive pay and benefits for at least 60 days, assistance in finding another job, access to transitional health benefits and eligibility for severance pay. As of the end of last year, Amazon had more than 1.5 million full-time and part-time employees excluding contractors and temporary personnel.

In recent years, Amazon has been investing heavily in artificial intelligence (AI) through AWS including recent investments in safety research start-up Anthropic. Other technology giants like Microsoft have also been investing heavily in AI capabilities. According to US career consultancy Challenger Gray & Christmas, the tech sector cut 168,032 jobs in 2023 – a 73% increase compared to 2022.

By Samantha Jones

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