Bengaluru: Earlier this week, the cloud business of Amazon Web Services (AWS) laid off hundreds of workers. Only a few weeks after CEO Andy Jassy said that AI would probably make some jobs at Amazon less necessary, there was a significant round of layoffs. Additional layoffs are anticipated before the end of this year, according to analyst Amanda Goodall.
According to Goodall’s forecasts, AWS will reduce its workforce by 10% overall, with approximately 25% of those positions being L7 (principal-level) positions. These upcoming layoffs are caused by a number of factors, including a high attrition rate that is controlled by performance improvement plans (PIP) and reduction in force (RIF).
Targeting senior principal-level positions at AWS indicates a conscious attempt to reduce expenses and flatten hierarchies, particularly as these positions typically carry some of the highest compensation packages.
Internal reports from Amazon suggest that AI tools and agents are being periodically increased, which are rapidly replacing jobs done by former employees. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” wrote CEO Jassy. This round of layoffs also streamlines a company’s change in structure and cuts back on “excess bureaucracy”, as per Jassy.
“We’ve made the difficult business decision to eliminate some roles across particular teams in AWS. These decisions are necessary as we continue to invest, hire and optimise resources to deliver innovation for our customers,” a company spokesperson said.
In addition to the cloud services section, the devices and services division, the books company, and the Wondery podcast group have also seen layoffs.
It was also reported that a message indicated that the employees were emailed about their termination on 17 July. The employees’ systems were deactivated once they received the emails.
