4 April 2024 – In recent months, Amazon has been in the spotlight for its series of layoffs across various departments. Now, the tech giant’s cloud computing arm, AWS, has announced significant layoffs as part of its ongoing restructuring efforts. This move reflects a strategic realignment towards core focus areas, amidst changing dynamics in application usage within Amazon-owned and third-party stores.
According to reports, AWS is undergoing substantial restructuring, resulting in the dismissal of hundreds of employees across divisions such as physical stores technology and sales and marketing. AWS senior vice president, Matt Garman, emphasized the importance of agility in an ever-evolving industry and acknowledged the challenges associated with organizational changes. Dilip Kumar, Vice President of AWS Applications, communicated the impact on teams handling identity and checkout functions within the Physical Stores Technology organization. He outlined plans to expand these technologies across different formats of Amazon stores.
While AWS assures its commitment to supporting affected employees by exploring internal opportunities and continuing hiring in other segments, these layoffs mark another chapter in Amazon’s ongoing restructuring efforts. This follows previous rounds of layoffs in 2022 and 2023, which affected various business units including Twitch, Audible, and Prime Video. Despite the challenges, impacted employees in the US will receive pay and benefits for a minimum of 60 days, along with severance packages.
