Amazon has become the latest tech giant to trim its workforce amid a broader industry trend of layoffs, as the rise of artificial intelligence (AI) continues to reshape company priorities. In a major move, the company has laid off several hundred employees across multiple teams within its cloud computing arm, Amazon Web Services (AWS), according to a Reuters report.
This fresh round of job cuts underscores Amazon’s ongoing shift in focus, as it doubles down on AI investments and reorganises resources to stay competitive in the rapidly evolving tech landscape.
According to the report, the company has, however, not disclosed the total number of roles eliminated. Employees affected were reportedly informed via email, with systems access revoked soon after. One impacted group includes AWS “specialists,” professionals who work closely with customers to develop and scale cloud-based solutions.
The AWS cuts follow earlier job reductions in Amazon’s books and devices division and its Wondery podcast business.
The cuts come just weeks after Amazon CEO Andy Jassy signalled that broader adoption of generative AI across industries would reduce the need for certain roles. Jassy has been working to streamline operations and reduce layers of management, calling out unnecessary bureaucracy in recent internal communications.
In a June 17 letter, Jassy had said that the company is significantly ramping up its investment in artificial intelligence. A move, that Jassy said, will transform the company’s operations and impact its workforce.
“As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he said.
Jassy said AI is being embedded across nearly every part of Amazon, from Alexa and online shopping to advertising and internal tools. He described generative AI as a once-in-a-lifetime technology that is reshaping what’s possible for both customers and businesses, adding that Amazon is making substantial investments in the space.
Amazon joins a growing list of tech companies including Microsoft, Meta, and CrowdStrike, that have announced job cuts this year, citing cost pressures and the shift toward AI-powered operations. Like them, Amazon is streamlining its workforce as companies increasingly turn to AI tools to automate tasks such as software coding and customer service.
Calling this as part of a “necessary rebalancing,” needed for investment in innovation, the company, according to the report, will continue hiring in strategic areas even as it eliminates redundancies.
Despite the layoffs, AWS remains a strong performer financially. The unit reported a 17% year-on-year jump in revenue to $29.3 billion in the first quarter of 2025, while operating income rose 23% to $11.5 billion.