Amazon is laying off some employees in it’s cloud computing division, Amazon Web Services (AWS). Teh company confirmed the layoffs on Thursday,stating that the decision was made after a thorough review of the organization and its priorities.While Amazon did not disclose the exact number of employees affected or which specific units within AWS were impacted, a memo viewed by CNBC indicated that the training and certification unit was among those to see cuts.
This move comes after AWS reported a third consecutive quarterly revenue miss in May, with sales increasing 17% to $29.27 billion in the first quarter, a slowdown from the previous period.
Amazon stated that the layoffs are not primarily due to investments in artificial intelligence but are part of ongoing efforts to streamline the workforce and refocus on certain priorities. The company also mentioned that it continues to hire within AWS.
amazon CEO Andy Jassy has been implementing cost-cutting measures for several years, resulting in over 27,000 job cuts since 2022. Layoffs have also affected other divisions, including stores, communications, and devices and services. Last year, AWS cut hundreds of jobs in its physical stores technology and sales and marketing units.
Jassy has previously predicted that the company’s corporate workforce could shrink further as it embraces generative AI, suggesting that fewer people will be needed for some current jobs, while others will require new skills.
