Amazon's cloud computing division is implementing layoffs affecting hundreds of employees in its physical stores technology and sales and marketing units, the company confirmed on Wednesday.
"We've identified specific areas of the organization that we need to streamline to maintain our focus on key strategic initiatives that we believe will have the greatest impact," stated an Amazon Web Services spokesperson. "These decisions were made thoughtfully, and we are committed to assisting affected employees as they transition to new roles both within and outside of Amazon."
The layoffs were initially reported by GeekWire.
While Amazon's highly profitable AWS unit has experienced a slowdown in sales growth in recent quarters due to companies scaling back their cloud spending amid rising interest rates, executives expressed cautious optimism in February, noting signs of a potential market rebound.
The reduction in the AWS store technology team comes following Amazon's announcement of the removal of cashierless checkout systems from its U.S. Fresh stores. This unit within AWS oversees cashierless technology, including the Just Walk Out system, as well as Dash smart carts and Amazon One palm-based payment technology.
In 2022, the store technology team was transferred from Amazon's retail division to its cloud computing division.
According to the AWS spokesperson, the decision to downsize the store technology division reflects a broader strategic shift in the utilization of certain applications in Amazon-owned and third-party stores.
Amazon's ongoing workforce reductions follow a period of significant layoffs spanning late 2022 and throughout 2023, during which Amazon implemented its largest-ever layoffs, affecting over 27,000 jobs across nearly all areas of the company. In the current year, Amazon has terminated employees in its Twitch, Audible, Buy with Prime, and Prime Video and MGM Studios divisions.
Affected employees in the U.S. will receive pay and benefits for at least 60 days and will be eligible for severance packages.
