Amazon Web Services (AWS), the cloud computing arm of Amazon, announced a series of layoffs as part of a strategic move to ‘optimize resources.’ This decision aligns Amazon with other tech giants like Meta and Microsoft, which have also reduced their workforce amid significant investments in artificial intelligence.
The layoffs, initially reported by Reuters, suggest that hundreds of roles within AWS could be affected. CNBC highlighted that the training and certification unit of AWS was among the teams impacted, based on a memo from division head Michelle Vaz. However, Amazon has not disclosed the precise number of employees affected by these changes.
AWS Revenue Growth Below Expectations
Earlier this year, AWS reported its third consecutive quarter of revenue growth below market expectations. The company saw a 17% year-on-year increase in sales, reaching $29.27 billion in the first quarter, compared to an 18.9% growth in the previous quarter.
Amazon’s Workforce Dynamics
In its latest annual report, Amazon stated that it employs approximately 1,556,000 workers, both full-time and part-time. Of this number, around 350,000 are in corporate roles, with the bulk of employees working in warehouse operations, as per Bloomberg data.
An Amazon spokesperson commented on the layoffs, saying, ‘After a thorough review of our organization, our priorities, and what we need to focus on going forward, we’ve made the difficult business decision to eliminate some roles across particular teams in AWS. We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition.’
CEO’s Vision on Workforce Realignment
Amazon CEO Andy Jassy had previously warned employees about impending changes, stating, ‘We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.’
Despite these job cuts, AWS continues to recruit for other roles, signaling that the layoffs are not primarily driven by AI investments but are part of a broader restructuring initiative aimed at enhancing workforce efficiency and aligning teams with key business goals.
Wider Impacts of Cost-Cutting Measures
Under the leadership of Andy Jassy, Amazon has embarked on a significant cost-cutting campaign, leading to the elimination of over 27,000 jobs since 2022. Although the pace of layoffs has slowed in 2025, several departments, including Amazon’s physical retail, communications, and devices and services, continue to experience job reductions.
In 2023, AWS had already reduced hundreds of roles within its physical store technology division and its sales and marketing teams.
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Note: This article is inspired by content from https://www.outlookbusiness.com/corporate/amazon-cuts-jobs-across-cloud-computing-arm-aws-after-ceos-warning. It has been rephrased for originality. Images are credited to the original source.