Amazon cuts hundreds of jobs in cloud computing unit

• Amazon Web Services (AWS) now accounts for 14% of the company’s total revenue.
• Amazon has removed its self-checkout system, Just Walk Out, from all stores.
• AWS spokesperson stated these decisions are necessary for innovation delivery.

Amazon announces job cuts impacting hundreds of staff in its cloud computing business. According to its latest financial report, Amazon Web Services (AWS) has experienced significant growth and now accounts for 14% of the company’s total revenue. As part of its evolving strategy, Amazon has also launched a physical store called Amazon Fresh in 2020.

On Tuesday, Amazon announced the removal of its self-checkout system, Just Walk Out, from all its stores. The company stated that the latest job cuts would affect several hundred roles in sales, marketing, and global services, as well as a few hundred roles in its physical stores technology team.

“These decisions are difficult but necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers”, an AWS spokesperson told the private news agency.

The firm also said “it will continue to hire and grow, especially in core areas of our business”, adding that there are thousands of jobs available and it is working to find internal opportunities for employees whose roles are affected.

Amazon said that the cuts would occur at its operations worldwide, with the majority of AWS roles located in its home city, Seattle. The company stated that US-based employees would receive pay and benefits for a minimum of 60 days, assistance in finding alternative employment, and access to transitional health benefits. Additionally, they would be eligible for severance pay. As of the end of last year, Amazon had a total of over 1.5 million full-time and part-time employees, excluding contractors and temporary personnel.

Amazon has been placing a strong emphasis on artificial intelligence (AI) through AWS, recently making investments in safety and research start-up, Anthropic. Last month, the company focused on enhancing its AI capabilities, joining other technology giants like Microsoft, which invested in ChatGPT. In January, Amazon implemented job cuts across its subsidiaries, including Twitch, Prime Video, and MGM Studios. Over 500 employees at Twitch, which accounted for a third of the streamer’s workforce, were laid off.

US career consultancy Challenger, Gray & Christmas reported a 73% increase in job cuts in the tech sector in 2023 compared to 2022. A total of 168,032 jobs were cut during this period.

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