Amazon: Big Tech Company Lays Off Hundreds of Employees in Cloud Computing Division

Amazon, a leading technology giant, has announced job cuts that will impact hundreds of employees in its cloud computing business. The company has been shifting its strategy by focusing on physical stores such as Amazon Fresh, which were launched in 2020. On Tuesday, Amazon said it would be removing its self-checkout system, Just Walk Out, from all its stores.

The job cuts will affect roles in sales, marketing, and global services as well as several hundred roles in the physical stores technology team. An AWS spokesperson told the BBC that these decisions are difficult but necessary as the company continues to invest, hire and optimize resources to deliver innovation for its customers. Despite this news, Amazon also stated that it will continue to hire and grow especially in core areas of its business with thousands of jobs available and efforts to find internal opportunities for affected employees.

The cuts will take place at Amazon’s operations worldwide with most of the AWS roles based in Seattle. US-based employees affected by the job cuts will receive pay and benefits for at least 60 days, assistance in finding another job, access to transitional health benefits and eligibility for severance pay. As of the end of last year, Amazon had a total of more than 1.5 million full-time and part-time employees excluding contractors and temporary personnel.

In recent years Amazon has been investing heavily in artificial intelligence (AI) through AWS including recent investments in safety and research start-up Anthropic. Other technology giants like Microsoft have also been investing in AI capabilities. According to US career consultancy Challenger Gray & Christmas, the tech sector cut 168,032 jobs in 2023 – a 73% increase compared to 2022 indicating that layoffs are becoming more common across industries.

By Riley Johnson

As a content writer at newsmol.com, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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