Amazon Continues the Layoffs in Cloud and Store Tech Departments

(Credits: Amazon)

Reports indicate that Amazon is continuing its layoffs, with the Amazon Web Services (AWS) cloud computing unit planning to cut “several hundred” positions in sales, marketing, global services, and “a few hundred” roles in its physical stores technology division.

The decision to reduce headcount in the AWS physical stores technology division follows the recent announcement that Amazon will replace its “Just Walk Out” cashierless shopping technology with Dash Cart smart carts in Amazon Fresh stores.

Internal emails obtained by Geekwire reveal that the majority of staff reductions in the sales, marketing, and global services organization will focus on training, certification, and sales operations. AWS plans to rely more on third-party training programs.

The layoffs are global, with affected U.S. employees receiving pay and benefits for at least 60 days, outplacement support, transitional health benefits, and severance payments. (Credits: Alex Castro)

Matt Garman, AWS senior VP, emphasized in an internal corporate email that these decisions were made to prepare the organization for the future, align with its strategy, and reduce duplication and inefficiency.

Dilip Kumar, VP of AWS applications, noted in a separate email that the company is expanding its identity and checkout technologies in smaller-format first-party stores and third-party locations based on customer feedback.

An Amazon spokesperson stated to Geekwire that AWS identified specific areas for streamlining to focus efforts on key strategic areas.

The layoffs are global, with affected U.S. employees receiving pay and benefits for at least 60 days, outplacement support, transitional health benefits, and severance payments. (Credits: Skorzewiak)

The spokesperson assured that AWS continues to hire in other areas and will assist affected employees in finding new positions internally or externally.

This follows Amazon’s previous layoffs in April 2023, affecting AWS positions in the U.S., Canada, and Costa Rica.

More recently, the company reduced headcount in its Buy with Prime service and eliminated roles in Prime Video, Amazon MGM Studios, and Twitch gaming streaming platform.

Nate O'Hara
Nathan is a seasoned commerce writer with a passion for unraveling the intricacies of the business world and distilling them into engaging narratives. During his academic journey, he delved deep into subjects like economics, marketing, and entrepreneurship, honing his analytical skills and developing a keen understanding of market dynamics.