Amazon has reportedly laid off several hundred employees from its cloud computing division, Amazon Web Services (AWS), as part of a restructuring effort. The layoffs primarily impacted specialist teams that help customers design and implement AWS services, reports Reuters. Employees affected by the layoffs were notified on Thursday (July 17) morning. Several reported being locked out of company systems shortly after receiving email notifications, with little warning in advance.
This round of layoffs reflects a wider trend across Amazon under CEO Andy Jassy. In recent years, Jassy has pushed to make the company leaner and more efficient, with a particular emphasis on removing unnecessary layers of management. Even he recently spoke about the growing role of generative AI within Amazon. Jassy stated that AI would gradually replace some corporate roles to improve efficiency. However, the statement drew backlash from employees who were concerned about potential job losses.
According to the report, the company assured that it is offering support to employees affected by the layoffs. US-based workers will receive around 60 days of continued pay and benefits. Additionally, the company is said to be offering severance packages, extended healthcare coverage, and access to internal job placement services. The firm is also encouraging impacted staff to explore open positions in other departments, especially in high-priority areas where hiring is still underway.
Despite the job cuts, AWS remains a major profit driver for Amazon. In the first quarter (Q1) of 2025, AWS generated $29.3 billion in revenue, a 17% increase from the previous year. Operating income also rose by 23%, reaching $11.5 billion. Experts suggest that this strong financial performance indicates the layoffs are not a result of declining business, but rather part of a strategic shift toward optimizing the organization for future growth.
The AWS job cuts are the latest in a series of layoffs across various parts of Amazon over the past year. Recently, in June 2025, the company laid off employees in its books division, followed by staff reductions in its Devices and Services unit in May 2025. Earlier, in February 2025, Amazon also cut jobs at Wondery (its podcast network). All of this comes as reports emerged earlier this year suggesting that the company plans to reduce its global management workforce by around 14,000 positions by early 2025.
However, Amazon is not alone in cutting roles within its cloud division. In February this year, Google reportedly laid off some employees in its cloud division, describing the move as an ‘adjustment’ aimed at aligning with evolving customer needs and future opportunities.
