Hundreds of positions eliminated in the cloud computing division

Amazon’s cloud computing division, AWS, recently announced the elimination of hundreds of positions within its physical stores technology, sales, and marketing units. The company confirmed this move, attributing it to the need for streamlining certain areas of the organization to refocus on key strategic priorities aimed at maximizing impact.

The decision was not taken lightly, according to an AWS spokesperson. The affected employees will receive support during their transition to new roles, both within and outside of Amazon. The layoffs were initially reported by GeekWire, shedding light on the restructuring within AWS amid a changing business landscape.

Amazon’s AWS unit, while historically a powerhouse in the cloud computing industry, has faced challenges with sales growth slowing in recent quarters as businesses adjusted their cloud spending due to increasing interest rates. Despite this, Amazon remains optimistic about the future, citing signs of a market reacceleration.

Notably, the cuts in AWS’ store technology team coincide with Amazon’s decision to remove cashierless checkout systems from its U.S. Fresh stores. The AWS division oversees various technologies, including the innovative Just Walk Out cashierless tech, Dash smart carts, and Amazon One palm-based payment systems.

Amazon’s strategic shift in the deployment of certain applications in owned and third-party stores prompted the decision to reduce the store technology division. This move aligns with Amazon’s ongoing efforts to adapt to evolving market dynamics and consumer preferences.

Additionally, following a series of significant layoffs in 2022, totaling over 27,000 job cuts across various departments, Amazon continues to refine its workforce structure. The company has extended support to employees impacted by the recent layoffs, ensuring continued pay and benefits for at least 60 days, along with eligibility for a severance package.

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