Amazon’s AWS Slashes Jobs Amid Cloud Unit Restructuring

• Amazon’s AWS unit lays off hundreds as AI tools reduce need for human roles.
• Multiple AWS teams, including specialists, impacted by the downsizing.
• Despite layoffs, AWS posted strong Q1 results, with $29.3B in sales and $11.5B in income.

Amazon has begun another round of layoffs in its cloud computing operation, Amazon Web Services (AWS), hitting at least several hundred employees, insiders say. This job cut comes about a month after CEO Andy Jassy hinted that the integration of generative AI tools would likely lead to workforce reductions. AWS did not share the precise number of laid-off positions but a spokesperson confirmed the choice to proceed with the statement on Friday, as the company is actively trying to "invest, hire, and optimize resources" to drive innovation for customers.

The layoffs came at several teams across AWS, including the "specialists" operational unit - professionals who work directly with clients to come up with new product ideas or raise current services. Several employees reported being notified of layoff on Thursday morning, which included access deactivation and a notification of employment status.

Amazon, which employed 1.6 million full and part-time employees worldwide at the end of March, now joins a growing list of other major technology companies, like Microsoft, Meta and Crowd Strike, that have begun laying people off in 2025. These companies are using more and more AI-driven automation and code-generation tools to eliminate jobs as a way to cut labor costs and improve efficiency.

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While the job cuts are underway, AWS has had good business results. In the first quarter of 2025, Amazon's sales at AWS increased 17% year-over-year to $29.3 billion. Operating income grew 23% to $11.5 billion. Despite the significant staff reductions, Amazon is still able to strategically re-invest other positions it has found and eliminated. Although most in the company are impacted, CEO Jassy described eliminating "a lot of bureaucracy," particularly among levels of management from various areas of the company.

In recent months, the company has made smaller cuts across its various divisions including books, devices and services, and Wondery. Workforce restructuring is being used as a strategy across the tech sector, as companies reshape to an AI-enabled operational configuration while balancing innovation with cost.