Amazon Web Services lays off hundreds of tech, sales staff amidst company reorganisation

Amazon Web Services (AWS) announced on Wednesday the elimination of several hundred roles in sales, marketing, and tech, as part of a series of layoffs by its parent company, Amazon.com. The affected employees span AWS' sales, marketing, and global services division and the physical stores technology team.

This decision is seen as a move to streamline certain areas of the organization, according to an AWS spokesperson. The layoffs come as many big tech companies continue to cut jobs, with more than 57,000 workers laid off across 229 firms in 2024 alone, as per Layoffs.fyi. Amazon itself has laid off more than 27,000 employees in 2022 and 2023, following an over-hiring spree during the pandemic.

The recent cuts at AWS, which has a 60,000-strong sales, marketing, and global services division, is reportedly part of a larger reorganisation under sales chief Matt Garman. Despite a slowdown in growth in the previous year, Amazon's cloud business has shown signs of stability, even exceeding quarterly revenue expectations in February. However, it faces stiff competition from Microsoft in the race for cloud dominance, particularly in the field of generative artificial intelligence.