Amazon cloud services division to shed hundreds of jobs

SAN JOSE (California): The cloud computing division of Amazon, Amazon Web Services (AWS), has announced plans for hundreds of job cuts, as the group shifts its focus.

The layoffs specifically target the division’s physical stores, technology, and sales and marketing departments.

“We’ve identified a few targeted areas of the organisation we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact,“ an AWS spokesperson said in a statement, reported German news agency (dpa).

The company said they are committed to supporting affected employees in transitioning to new roles, both within and outside of Amazon.

The reduction in staff comes amidst a broader strategic shift within AWS, as the company adjusts its focus in response to market dynamics. The AWS unit has experienced a slowdown in sales growth recently, attributed in part to companies scaling back their cloud spending amid rising interest rates.

The layoffs within AWS’ store technology division coincide with Amazon’s decision to discontinue cashier less checkout systems in its US Fresh stores. The affected teams oversee various technologies, including the cashier less tech “Just Walk Out,“ Dash smart carts, and Amazon One palm-based payment system.

This move follows a series of layoffs initiated by Amazon in late 2022, amounting to over 27,000 job cuts across various departments. This year alone, layoffs have affected employees in Twitch, Audible, Buy with Prime, Prime Video, and MGM Studios units.

Affected US employees will receive pay and benefits for at least 60 days, along with eligibility for severance packages. – Bernama, dpa

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