Summary:
- Amazon’s AWS cloud unit lays off hundreds as part of ongoing cost-cutting and reorganization efforts.
- The cuts follow CEO Andy Jassy’s warning that AI adoption will reshape and reduce Amazon’s corporate workforce.
- AWS continues to hire in priority areas despite the layoffs.
Workforce Shifts as Amazon Embraces AI and Efficiency
Amazon has confirmed it has laid off at least hundreds of employees within its Amazon Web Services (AWS) cloud computing division, deepening a wave of tech industry restructuring driven by artificial intelligence and cost control.
The layoffs, first reported by Reuters, affect several AWS teams, including its training and certification unit, according to internal memos. While Amazon declined to disclose the exact number of employees affected, the company stated the decision followed a thorough review of priorities and resource allocation within its cloud arm.
“We’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” an Amazon spokesperson said, emphasizing the company’s commitment to support those impacted during the transition. “These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”
AWS, a central driver of Amazon’s profitability, reported first-quarter sales growth of 17% year-over-year to $29.3 billion, slightly below the previous quarter’s 18.9% growth. Despite strong revenue figures, Amazon has highlighted the need to adjust its workforce as AI tools begin to automate routine tasks and coding functions.
A Broader Restructuring in a Shifting Tech Landscape
The job cuts come weeks after CEO Andy Jassy told employees that generative AI adoption would inevitably reduce Amazon’s corporate workforce while creating demand for new skill sets. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said, predicting an overall reduction in Amazon’s corporate staff over the coming years.
Since 2022, Amazon has eliminated more than 27,000 roles as part of an extensive cost-cutting campaign across various divisions, including its devices, services, and physical retail operations. While the pace of layoffs has slowed in 2025, departments across the company continue to face targeted cuts.
The latest AWS layoffs align Amazon with other tech giants like Microsoft, Meta, and CrowdStrike, all of which have announced workforce reductions this year while ramping up AI investments. Companies across the sector are increasingly turning to AI to handle software development and automate tasks, reducing their reliance on traditional workforce structures.
Amazon stated that the current cuts are not primarily due to its AI investments but reflect ongoing efforts to streamline operations and refocus teams on strategic areas within AWS. The company emphasized that hiring will continue in priority sectors to support customers and sustain innovation within its cloud services.
As Amazon navigates the challenges of balancing workforce reductions with technological transformation, the company’s restructuring underscores the sweeping impact AI is having on reshaping labor across the tech industry. For now, AWS remains a core profit engine for Amazon even as it adapts to the shifting demands of an AI-driven future.