Amazon trims workforce in cloud division despite continued revenue growth and investment in AI automation
Amazon’s latest layoffs at AWS highlight a shifting focus toward operational efficiency and AI-driven restructuring, even as cloud revenues rise.
- Jul 18, 2025,
- Updated Jul 18, 2025 2:05 PM IST
Amazon has laid off several hundred employees across its Amazon Web Services (AWS) division, marking another phase in the company’s ongoing workforce reduction strategy. The move, confirmed on Thursday, comes as part of a broader effort to streamline operations across the tech giant’s sprawling business.
“We’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” an Amazon spokesperson said. “These decisions are necessary as we continue to invest, hire, and optimise resources to deliver innovation for our customers.”
Sources familiar with the matter told Reuters that employees were informed of their termination via email, with their system access being revoked shortly after. Among the teams impacted is a group known internally as “specialists,” who work directly with clients to support the rollout of new AWS products and services.
The layoffs follow earlier cuts in Amazon’s books division, including at Kindle and Goodreads, as well as in its devices and services teams, Wondery podcast unit, and retail and communications departments.
This round of job reductions reflects CEO Andy Jassy’s broader goal of cutting down what he has described as unnecessary bureaucracy within Amazon. As part of this strategy, the company is focusing on reducing layers of management and integrating artificial intelligence more deeply into its workflows. Jassy recently told staff that AI will increasingly reduce the need for certain corporate roles over time.
Despite the layoffs, Amazon reported a solid first quarter for AWS. The cloud business posted a 17 percent increase in revenue year-on-year, reaching $29.3 billion. Operating income also rose by 23 percent, totalling $11.5 billion.
According to a filing from May, Amazon added approximately 4,000 new jobs in the first quarter of 2025 compared to the previous quarter, suggesting the company is reallocating resources rather than broadly shrinking its workforce.
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Amazon has laid off several hundred employees across its Amazon Web Services (AWS) division, marking another phase in the company’s ongoing workforce reduction strategy. The move, confirmed on Thursday, comes as part of a broader effort to streamline operations across the tech giant’s sprawling business.
“We’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” an Amazon spokesperson said. “These decisions are necessary as we continue to invest, hire, and optimise resources to deliver innovation for our customers.”
Sources familiar with the matter told Reuters that employees were informed of their termination via email, with their system access being revoked shortly after. Among the teams impacted is a group known internally as “specialists,” who work directly with clients to support the rollout of new AWS products and services.
The layoffs follow earlier cuts in Amazon’s books division, including at Kindle and Goodreads, as well as in its devices and services teams, Wondery podcast unit, and retail and communications departments.
This round of job reductions reflects CEO Andy Jassy’s broader goal of cutting down what he has described as unnecessary bureaucracy within Amazon. As part of this strategy, the company is focusing on reducing layers of management and integrating artificial intelligence more deeply into its workflows. Jassy recently told staff that AI will increasingly reduce the need for certain corporate roles over time.
Despite the layoffs, Amazon reported a solid first quarter for AWS. The cloud business posted a 17 percent increase in revenue year-on-year, reaching $29.3 billion. Operating income also rose by 23 percent, totalling $11.5 billion.
According to a filing from May, Amazon added approximately 4,000 new jobs in the first quarter of 2025 compared to the previous quarter, suggesting the company is reallocating resources rather than broadly shrinking its workforce.
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