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

In recent news, Amazon, the world’s largest technology company, has announced job cuts that will impact hundreds of employees across its cloud computing business. The company has been shifting its strategy by focusing more on physical stores such as Amazon Fresh, which was launched in 2020. On Tuesday, Amazon announced that 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 were difficult but necessary as the company continues to invest in innovation for its customers. Despite this, Amazon 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 worldwide with most 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 over 1.5 million full-time and part-time employees excluding contractors and temporary personnel.

In other news, recent investments in artificial intelligence (AI) through AWS have been a focus for Amazon including safety and research start-up Anthropic. Other technology giants like Microsoft have also been investing heavily in AI capabilities. According to US career consultancy Challenger, Gray & Christmas tech sector cut 168,032 jobs in 2023 – a 73% increase compared to 2022 indicating a shift away from traditional computer science roles towards more specialized AI related positions.

By Sophia Gonzalez

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