Amazon is laying off hundreds of employees from its physical store technology and sales and marketing units, including its cloud computing division, AWS. The decision to implement Amazon layoffs aims to streamline operations and focus more on strategic areas for maximum impact. Amazon emphasized that these choices weren’t made lightly. Also, they’re committed to supporting affected employees in transitioning to new roles within and outside Amazon.
In recent months, Amazon has been in the news for layoffs across various departments. Just days ago, reports surfaced suggesting that the company might not increase base pay for many senior employees this year. The trend continues with this announcement of Amazon layoffs from the cloud computing arm, AWS.
Amazon Layoffs 2024 Affect Various Units
After over a year of significant layoffs, Amazon is still conducting layoffs in 2024. Starting at the end of 2022 and through 2023, Amazon laid off over 27,000 employees, affecting almost every part of the company.
This year, they’ve already laid off workers from units like Twitch, Audible, Buy with Prime, Prime Video, and MGM Studios. Employees in the US will keep getting paid and get benefits for at least 60 days. They can also get a severance package.
In the memo, Lindsay talked about Amazon’s commitment to improving customer experiences and pushing innovation. He said the restructuring involved cutting several hundred positions across One Medical and Amazon Pharmacy. Although Business Insider had already reported on these layoffs, Lindsay’s memo officially confirmed it before the company’s planned announcement.
Earlier this year, Amazon also reduced its workforce by 5 percent in the “Buy with Prime” division.
Amazon’s AWS Restructuring Leads to Hundreds of Layoffs
Amazon’s cloud computing division, AWS, is undergoing a big change, resulting in the dismissal of many employees from its physical store technology and sales and marketing teams. As confirmed by an AWS spokesperson, this shift is part of a plan to focus more on specific areas that are considered critical. Moreover, the company is helping affected employees find new roles. Notably, these layoffs are happening when there is a shift in how applications are used, both in Amazon-owned and other stores.
Amazon’s very profitable AWS unit has seen its sales growth slow down in recent times. Due to higher interest rates, businesses have been spending less on cloud services. Amazon leaders were somewhat hopeful in February when they mentioned that the market was starting to pick up again.
The layoffs in AWS’s store technology team occurred after Amazon decided to remove cashierless checkout systems from its US Fresh stores. The AWS unit includes teams responsible for the cashierless technology known as Just Walk Out, its Dash smart carts, and its Amazon One palm-based payment system. The store technology team was moved from Amazon’s retail group to its cloud computing division in 2022.
Amazon Implements Changes for Future Growth
Amazon’s Dilip Kumar, Vice President of AWS Applications, explained that the organization is changing to prepare for the future and improve efficiency. These changes will affect specific teams working on identity and checkout functions within the Physical Stores Technology organization at AWS.
Kumar mentioned they’ve gained valuable insights from launching identity and checkout technologies in large Amazon Fresh stores, with positive customer feedback. They plan to expand these technologies into smaller 1P stores and increase their presence in third-party locations.
Also Read: Forbes Richest List 2024: Mukesh Ambani Leads in India, Gautam Adani Follows at 2nd Position
PepsiCo India to Invest Rs 1,266 Crore for New Flavour Facility in Madhya Pradesh
Drogo Drones is Empowering Rural Women in the NaMo Drone Didi Initiative
