Amazon Web Services (AWS), the cloud computing wing of Amazon, laid off several hundred employees on Thursday as part of a broader effort to tighten operations across the company.
The job cuts come amid Amazon’s ongoing push to focus on high-priority areas, especially as artificial intelligence and automation continue to reshape how the company allocates its resources.
The layoffs at AWS hit several teams across the division, with the “specialists” group known for helping customers develop new product ideas and drive sales, taking the biggest hit.
Other areas likely impacted include customer support, training and certification programs, and the AWS Worldwide Specialist Organization, though Amazon hasn’t confirmed exactly which teams were affected.
According to employees, the notifications started rolling out early on the morning of July 17, with access to internal systems cut off shortly afterward.
While Amazon hasn’t shared an official headcount, statements from company representatives and impacted workers suggest that the number of layoffs is in the hundreds.
Reasons behind the cuts
The layoffs are part of a broader shift in strategy under CEO Andy Jassy, who has emphasized the growing role of generative AI and automation in streamlining Amazon’s operations.
Jassy has been vocal about the need to cut through what he calls “excess bureaucracy,” aiming to flatten management structures and simplify how teams work together.
As AI takes on more responsibilities from coding and customer support to everyday operational tasks Amazon, like other major tech players such as Microsoft, Meta, and Intel, is looking to trim costs and lessen its dependence on human labor.
Still, the company maintains that the recent cuts aren’t just about automation, but about reallocating resources toward areas with the most potential for growth.
Amazon spokespeople framed the layoffs as part of a larger effort to refocus and invest in areas that drive innovation for customers.
While some roles are being cut, the company said it remains committed to hiring in teams that are more closely aligned with its long-term growth strategy.
In the US, employees impacted by the layoffs will receive at least 60 days of pay and benefits, and may also be eligible for severance packages.
Robust Q1 performance
Even with the layoffs, AWS is far from struggling.
The cloud business pulled in $29.3 billion in sales during the first quarter of 2025, up 17% from the year before. Operating income climbed 23%, highlighting just how central AWS still is to Amazon’s broader business.
Amazon says it’s still hiring but more selectively.
The focus now is on roles that tie directly to long-term priorities, especially in fast-moving areas like generative AI and cloud infrastructure.
At its core, the July 17 layoffs reflect a company in transition. Amazon is trying to become faster, leaner, and more AI-driven.
That means cutting back in places where automation can do the job and placing bigger bets on the technologies it believes will define the future.
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