Amazon Slashes Roles In AWS Cloud Unit As CEO Andy Jassy Says AI Will Reduce The Need For Certain Roles: Report

Amazon.com Inc. (NASDAQ:AMZN) has reportedly laid off several employees within its Amazon Web Services (AWS) cloud division, as the company continues to restructure amid the growing impact of generative artificial intelligence.

What Happened: At least several hundred employees in AWS were let go, reported Reuters, citing two sources familiar with the matter. While Amazon confirmed the layoffs, it declined to disclose the exact number of affected workers.

"We've made the difficult business decision to eliminate some roles across particular teams in AWS," an Amazon spokesperson told the publication. "These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers."

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Employees in multiple teams, including the "specialists" group—who work closely with clients to develop cloud solutions and promote services—were impacted, the report said.

Several workers told the publication they received termination emails and had their systems deactivated on Thursday morning.

Why It's Important: The cuts follow Amazon CEO Andy Jassy's comments that the increasing use of AI would reduce the need for certain roles.

Amazon is also among a growing list of tech giants, including Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META) and CrowdStrike Holdings Inc. (NASDAQ:CRWD), to announce job reductions in 2025.

Last month, Amazon laid off fewer than 100 employees in its Books division, including at Goodreads and Kindle, as part of ongoing efforts to streamline operations. The move followed job cuts across other units like devices and services, Wondery, and its stores and communications teams.

Price Action: Amazon shares rose 0.31% during Thursday's regular session and added another 0.21% in after-hours trading, according to Benzinga Pro data.

Benzinga's Edge Stock Rankings show that Amazon continues to exhibit a strong upward trend across short, medium and long-term periods. More detailed metrics are available here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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