Amazon's AWS implements hundreds of job cuts across divisions

Amazon's Web Services (AWS) division has implemented significant layoffs, with several hundred roles being cut in sales, marketing, and technology. This move aims to streamline specific areas within the organization, according to an AWS spokesperson, Reuters reported. The layoffs are not limited to AWS, as Amazon has also downsized its Prime Video, healthcare, and Alexa units, aligning with a broader trend seen in the tech industry over the past couple of years.

In 2024 alone, over 57,000 job cuts have been tracked across 229 companies, with Amazon previously eliminating more than 27,000 roles in 2022 and 2023. The restructuring at AWS is reportedly part of a larger reorganization led by sales chief Matt Garman. Despite facing economic uncertainties, Amazon's cloud business has shown signs of stabilization, contributing to the company's revenue performance exceeding expectations in February. 

However, Amazon's dominance in cloud computing faces competition from Microsoft, which has made significant strides in leveraging generative artificial intelligence, notably through its investment in OpenAI, the creator of ChatGPT.

In a similar vein, other tech companies like Ericsson and Dell have also announced workforce reductions due to various market challenges. Ericsson cited a slowdown in 5G network demand as the reason for laying off around 1,200 employees in Sweden, while Dell implemented cost-cutting measures resulting in a decrease in its workforce. Additionally, IBM announced job cuts in its marketing and communications division, although specific numbers were not disclosed.