According to two people familiar with the situation, Amazon has laid off hundreds of workers in its cloud computing subsidiary, Amazon Web Services (AWS), as the corporation continues to reorganise in response to the increasing usage of artificial intelligence throughout its operations.
The layoffs come after CEO Andy Jassy warned last month that as companies automate more jobs and reevaluate labour requirements, generative AI technologies will result in employment cutbacks.
A representative for Amazon acknowledged the layoffs but did not specify the number of people affected. “We’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” stated a spokeswoman. “These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.
Many AWS teams were impacted, including at least one group of “specialists” who create and market cloud-based services in close collaboration with clients. Workers told Reuters that emails informing them of their termination and the deactivation of their work accounts were sent to them on Thursday morning.
Although the extent of the layoffs is unknown, they are a part of Amazon’s larger initiative to cut down on what Jassy has called “excess bureaucracy” in the organization. In recent months, the corporation has also reduced staff in other areas, including its Wondery podcast division and its books, gadgets, and services business.
Amazon, which has 1.6 million employees worldwide as of March, has announced layoffs this year along with other significant tech companies, including Microsoft, Meta, and CrowdStrike. The need for workers is changing as a result of many businesses’ rapid adoption of AI to develop code and automate repetitive tasks.
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