Amazon Cuts Jobs Across Cloud Computing Arm AWS After CEO's Warning

Amazon on Thursday announced layoffs across its cloud computing division, Amazon Web Services (AWS), as part of an effort to "optimize resources." With this move, the company joins tech giants like Meta and Microsoft in eliminating jobs this year amid heavy investments in artificial intelligence.

The cuts were first reported by Reuters, which noted that at least hundreds of roles could be affected. CNBC reported that AWS’ training and certification unit was among the teams impacted, citing a memo from division head Michelle Vaz. However, the company has not disclosed the exact number of affected employees.

“After a thorough review of our organisation, our priorities, and what we need to focus on going forward, we’ve made the difficult business decision to eliminate some roles across particular teams in AWS. We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition,” an Amazon spokesperson told US media.

According to Amazon’s latest annual report, the company employs approximately 1,556,000 full-time and part-time workers. Of those, about 350,000 are in corporate roles, with the majority working in warehouses, according to Bloomberg.

The job cuts follow a warning from Amazon CEO Andy Jassy, who recently told employees: “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.”

Amazon said the layoffs were not primarily driven by its AI investments but were part of a broader restructuring initiative aimed at improving workforce efficiency and aligning teams with key business goals. Despite the cuts, AWS continues to recruit for other roles.

Layoffs Follow Earnings Miss

Earlier this year, AWS posted its third consecutive quarter of revenue growth below expectations. Sales rose 17% year-on-year to $29.27 billion in the first quarter, down from 18.9% growth in the previous quarter.

Under CEO Andy Jassy, Amazon has undertaken a sweeping cost-cutting campaign, resulting in over 27,000 job eliminations since 2022. While the pace of layoffs has slowed in 2025, departments such as Amazon’s physical retail, communications, and devices and services have continued to face job reductions.

In 2023, AWS had already trimmed hundreds of roles in its physical store technology division and in its sales and marketing teams.