AI adoption triggers job cuts at Amazon Web Services unit
The job cuts follow a warning last month from CEO Andy Jassy, who said that generative AI tools would lead to workforce reductions as businesses automate more tasks and rethink staffing needs.
An Amazon spokesperson confirmed the layoffs but did not provide a specific number. "We've made the difficult business decision to eliminate some roles across particular teams in AWS," the spokesperson said. "These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers."
Several AWS teams were affected, including at least one group known as "specialists", who work directly with customers to develop and sell cloud-based services. Employees told Reuters they received emails Thursday morning notifying them of their termination and the deactivation of their work accounts.
While the full scope of the layoffs is unclear, they are part of a broader effort by Amazon to reduce what Jassy has described as "excess bureaucracy" within the company. The company has also cut roles in other divisions in recent months, including its books, devices, and services business and its Wondery podcast unit.
As of March, Amazon employed 1.6 million people globally and has joined other major tech firms—such as Microsoft, Meta, and CrowdStrike—in announcing layoffs this year. Many companies are accelerating their adoption of AI to write code and automate routine tasks, prompting shifts in workforce needs.
Despite the job cuts, AWS continues to grow. Sales rose 17 percent year-over-year in the first quarter to US$29.3 billion, with operating income up 23 percent to $11.5 billion.
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