Amazon Cuts Jobs in AWS Amid AI Concerns

Amazon has laid off hundreds of employees in its Amazon Web Services (AWS) division, according to two sources, just a month after CEO Andy Jassy indicated that AI advancements would lead to workforce reductions.

An Amazon representative confirmed the job cuts but did not specify how many roles were eliminated.

With around 1.6 million global employees as of late March, Amazon has joined the ranks of other major companies like Microsoft, Meta, and Crowdstrike in announcing layoffs this year.

Many firms are increasingly relying on artificial intelligence to enhance their software and automate routine tasks. This trend has real implications—especially for jobs.

In an email, a spokesperson stated, “We have made the difficult business decision to eliminate some roles across a particular team on AWS. These decisions are necessary to continue investing, hiring, and optimizing resources to deliver innovation to our customers.”

Interestingly, AWS saw a 17% increase in revenue, reaching $29.3 billion in the first quarter compared to last year, with operating profit rising by 23% to $11.5 billion.

Employees reported receiving emails on Thursday morning indicating their termination, with their access to company systems promptly deactivated.

While the full extent of the layoffs remains unclear, at least one affected group, referred to as “experts,” is responsible for collaborating with customers to develop new products and market existing services.

Several teams within AWS were implicated in these job cuts. It’s part of a broader trend where Amazon has also been reducing roles in its books, devices, service units, and even podcast sectors.

Jassy also mentioned efforts to minimize the company’s bureaucratic structure, which includes reducing the number of managerial positions.