Amazon Layoffs Continue: Job Cuts to Focus on “Key Strategic Areas” Including AI

Key Takeaways

• Amazon is reducing its workforce, specifically in the Sales, Marketing, and Global Services (SMGS) organization and the Physical Stores Technology team.
• These cuts are part of Amazon’s broader strategy to optimize its operations and focus on areas with the most growth potential.
• Despite the layoffs, Amazon is actively hiring in other sectors that reflect the company’s shifting priorities.

Amazon’s recent announcement of job eliminations marks the latest in a series of workforce reductions across the company.

The change in focus toward more profitable sectors has seen streamlined operations across Amazon’s various divisions.

Strategic Cuts

Amazon is escalating its cost-cutting measures by laying off hundreds of employees in its cloud division, Amazon Web Services (AWS), marking the continuation of a trend that saw thousands of job cuts across the company in 2023.

While Amazon continues to trim its workforce in certain departments, the multinational is expanding  in other areas to realign its resources to capitalize on emerging opportunities such as AI.

An insider email  obtained by Business Insider confirmed the job cuts will affect the AWS department.

Amazon Scraps “Just Walk Out” Technology in US

Matt Garman, SVP of sales and marketing at AWS, emphasized that these reductions are strategic, aiming to consolidate efforts on core areas that promise the most significant impact.

Last week, the company cut around 160 roles in its advertising unit, the Amazon spokesperson told Business Insider.

One Amazon employee shared their reaction  to receiving the news of the layoff while they were on holiday.

Only a day before this, Amazon announced it was discontinuing its cashierless ‘Just Walk Out’ technology in U.S. grocery stores, marking a significant shift in its retail strategy.

Are Tech Companies Ditching Cloud Computing?

Amazon joins other tech companies in moving away from a focus on cloud computing where initial promises of cost savings and operational efficiency have proved challenging. 

While the cloud initially revolutionized how businesses deploy and manage applications, companies are increasingly adopting hybrid models, combining the cloud’s flexibility with the control and predictability of on-premises infrastructure.

A Broader Trend of Tech Job Cuts

Amazon’s workforce adjustments reflect a broader trend in the tech industry, where companies are aggressively pursuing AI and other advanced technologies. 

This industry-wide shift has led to a wave of layoffs, as firms like Google, Microsoft, and Facebook restructure their operations to focus on high-priority, high-impact areas.

The tech industry is facing a significant wave of turbulence in 2024, as data indicates a staggering 229 technology companies have initiated layoffs , impacting a total of 57,505 employees. 

The narrative across Big Tech is clear: streamline operations and reallocate resources towards more strategic areas of growth.

About the Author

Samantha Dunn

Samantha started as a traditional writer and journalist before falling down the Web3 rabbit hole. She now explores the ways in which emerging technology is impacting economies, industries, and the individual.

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