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Amazon Layoffs: There are going to be layoffs once again in e-commerce company Amazon. This is happening in Amazon Web Services (AWS). This time, the company's cloud computing division is laying off hundreds of employees who develop technology for its physical retail stores and sales, marketing units, global services division. Amazon fired about 30 employees from its 'Buy with Prime' unit in January 2024. Apart from this, hundreds of people also lost their jobs in Prime Video and MGM Studio business.
The cuts to Amazon Web Services' store technology team came as Amazon said it would remove cashierless checkout systems at its US Fresh stores. The AWS unit includes teams overseeing cashierless technology called Just Walk Out. This also includes its Dash smart cart and Amazon One palm-based payment technology. The store technology team was moved out of Amazon's retail group and added to its cloud computing division in 2022.
Why are jobs being cut?
“We have identified some targeted areas of the organization that need to be streamlined so we can continue to focus our efforts on key strategic areas,” an Amazon Web Services spokesperson said in a statement. “There will be a huge impact. “We didn’t make these decisions casually, and we are committed to supporting employees as they transition into new roles inside and outside of Amazon.” The spokesperson said the company decided to cut the Store Technology division in response to a broader strategic shift in the use of certain applications in Amazon-owned and third-party stores.
Layoffs are happening from the end of 2022
Amazon Web Services has seen its sales growth decline in recent quarters as companies cut their cloud spending amid rising interest rates. Amazon executives expressed some optimism in February, saying the market was beginning to show signs of a comeback. Amazon continues to cut its workforce after more than a year of mass layoffs. The layoffs began in late 2022 and will continue through 2023. During this time, the company conducted its largest layoffs to date, cutting more than 27,000 jobs across nearly every sector of the company. So far this year, Amazon has laid off employees at its Twitch, Audible, Buy With Prime, and Prime Video and MGM Studios units.