Amazon (NASDAQ:AMZN) Web Services (AWS) is planning to cut hundreds of jobs across its cloud computing division according to a report by GeekWire, which claims the tech giant’s executives alerted staff to the cuts via internal emails.
The cuts will be focused on the Sales, Marketing, and Global Services sector of the organisation, with a particular focus on training and certification and sales operations.
The layoff will also effect teams within the Physical Stores Technology, according to a statement by AWS vice president of applications Dilip Kumar.
“We do not take these decisions lightly, and I know change can be difficult,” wrote Matt Garman, AWS senior vice president.
“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.”
More to come?
This isn’t Amazon’s first round of layoffs this year.
Last week, AWS cut 160 jobs in its advertising unit. The company also reduced its Pharmacy and One Medical divisions by hundreds of employees and downsized its "Buy with Prime" division by 5% earlier this year.
The market remained unimpressed over the last 24 hours, with the stock dropping 1.32% to US$180 overnight, but has performed extremely well over the last six months, adding 42.9% to its stock price over that period.
Overall, the tech industry appears to be going through a period of retraction, laying off employees in swathes as they streamline operations and reduce overhead costs.
In 2024, data indicated an incredible 229 technology companies have executed layoffs, impacting more than 57,000 workers.
The performance of the S&P500 Technology Sector and the tech-heavy Nasdaq would indicate the tactic is working, at least in the short term, with the Nasdaq gaining 21.4% and the S&P500 Tech Sector 28.57% over the last six months.
It’s likely the layoffs will continue across the sector for some time yet as companies attempt to restructure to tackle the new AI reality.