Amazon Web Services Streamlines Operations, Reduces Workforce in Key Departments Amid Digital Pivot

Amazon.Com, Inc AMZN cloud unit Amazon Web Services (AWS) announced job cuts within its Sales, Marketing, and Global Services organization, as well as the Physical Stores Technology team. 

The company communicated these reductions, involving several hundred positions, to employees through internal emails. 

Most of the cuts within the Sales, Marketing, and Global Services sectors affect training, certification, and sales operations. 

AWS plans to pivot towards digital self-service training and programs managed by external partners. The company cited overlapping roles as a reason for the cuts, GeekWire reports.

Also Read: Google Announces Major Job Cuts in Ad Sales, Shifts Focus to AI and Automation

Despite these layoffs, AWS remains in a hiring mode for other parts of its business, actively seeking to reposition affected employees within the company. 

The cuts are part of AWS’s strategy to streamline its operations and focus on critical strategic areas anticipated to have the most significant impact. 

The job reductions are set to occur globally, with a considerable effect expected on Amazon’s Seattle workforce. Affected U.S. employees will receive comprehensive support, including severance packages and job placement assistance.

Amazon slashed hundreds of positions in 2024 and around 27,000 in 2022 and 2023, joining many tech companies. 

The job cuts included Twitch, Prime Video, Amazon MGM Studios, One Medical and Pharmacy units. It also looks to save $1.3 billion in costs by reducing its office space and opting out of leases early. 

Price Action: AMZN shares traded higher by 1.18% at $182.85 on the last check Wednesday.

Also Read: Amazon’s AWS Sets Sight on Japan Expansion With $15.5B Investment, Announces John Felton as New CFO

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

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