What Happened
Amazon confirmed it had laid off “some roles” across multiple teams within Amazon Web Services (AWS). While the company didn’t reveal exact numbers, two sources familiar with the matter said the cuts affected “at least hundreds” of employees. Workers were notified via email late Thursday morning that their positions were terminated and their access to systems was revoked.
Why It Matters
AWS remains Amazon’s most profitable division. In Q1, it generated $29.3 billion in sales, a 17% year-over-year increase, and $11.5 billion in operating income, marking a 23% rise. Despite these strong numbers, Amazon is eliminating what it sees as excess layers to stay agile, cut down on bureaucracy, and focus more on customer-centric innovation.
CEO Andy Jassy has often pointed out that generative AI is reshaping work, suggesting that some white-collar roles could eventually be handled by AI systems. However, AWS leadership, especially spokesperson Brad Glasser, clarified that these recent layoffs aren’t directly tied to AI. Instead, they result from a broader organizational review meant to align teams with strategic goals.
Teams Affected
Multiple AWS groups were impacted. One confirmed area is the team of “specialists” who support product development and customer sales. Internal communications also pointed to layoffs in support services, training and certification, marketing, analytics, and even some AI-related roles. Glasser stated that U.S.-based employees affected by the layoffs will receive at least 60 days of continued pay and benefits, along with severance and help transitioning their healthcare coverage.
What Comes Next
While these job cuts aim to streamline operations, Amazon also stressed it’s still hiring in critical growth areas. Glasser mentioned that AWS continues to post thousands of job openings in fields like cloud infrastructure, machine learning, and emerging technologies.
This round of layoffs at AWS is part of a larger restructuring effort at Amazon. Other impacted units include the books division, the devices and services team, and Wondery, Amazon’s podcast business. The trend is industry-wide—other tech giants like Microsoft, Meta, CrowdStrike, and Intel have also undergone job cuts this year in response to market shifts and ongoing technological change.
Takeaway
This isn’t about AWS losing strength. The division is still growing and remains highly profitable. What’s happening is a strategic reshaping of internal teams to reduce complexity and double down on innovation that drives long-term growth.
AI is certainly part of the broader picture, but according to AWS leaders, it isn’t the direct cause of these layoffs. The real driver is a need to stay sharp, nimble, and ready for the next wave of tech evolution. Amazon has promised support and internal job placement options for those affected. For those staying, the message is clear—focus on work that moves the needle and delivers value to customers.
