Tech layoffs: Amazon terminates hundreds of people from cloud computing unit, laid off 27000 in 2022-23

Amazon has been making waves for all the wrong reasons. This is largely due to the series of layoffs across various departments in recent months, and the manner in which they were conducted. Just days ago, reports surfaced suggesting that the tech giant might not be raising the base pay for many senior employees this year.

Now, Amazon has announced the termination of hundreds of employees from its cloud computing arm, Amazon Web Services (AWS). These layoffs are part of a significant restructuring within AWS, and will impact employees in the physical stores technology, sales, and marketing divisions.

According to Layoffs.fyi, over 57,000 employees have been affected by layoffs across 229 companies thus far in the current year.

Amazon’s layoffs in 2022 and 2023 totaled more than 27,000 people, after they went overboard in the tech industry’s hiring spree during the pandemic.

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An AWS spokesperson confirmed that these layoffs are part of a strategic realignment aimed at focusing on key areas. While the company is committed to assisting affected employees in transitioning to new roles, these layoffs coincide with broader changes in the utilization of applications within Amazon-owned and third-party stores.

Matt Garman, AWS senior vice president, acknowledged the difficulty of these decisions, emphasizing the fast-paced nature of the industry and the importance of organizational agility. He highlighted that the changes are geared towards preparing the organization for the future, aligning with strategic priorities, and reducing duplication and inefficiency.

Dilip Kumar, Vice President of AWS Applications, communicated to employees that the layoffs will impact teams handling identity and checkout functions within the Physical Stores Technology organization.

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He noted that insights gained from the implementation of identity and checkout technologies in Amazon Fresh stores inform future plans for expansion into smaller-format first-party stores and third-party locations.

Despite the layoffs, AWS stated its commitment to finding internal opportunities for affected employees, given the thousands of vacancies within the company. Additionally, Amazon intends to continue hiring in other areas of its business.

These job cuts are part of Amazon’s ongoing restructuring efforts, which commenced with significant layoffs in 2022 and extended into 2023, affecting various business units including Twitch, Audible, and Prime Video. Employees impacted by the recent layoffs in the US will receive pay and benefits for at least 60 days, along with eligibility for severance packages.

In a separate development last month, Amazon reportedly laid off hundreds of employees within its Pharmacy and One Medical divisions. Neil Lindsay, head of Amazon Health Services, confirmed in a memo the restructuring involving the elimination of several hundred positions across One Medical and Amazon Pharmacy. This move aligns with Amazon’s commitment to enhancing customer experiences and fostering innovation.

Earlier this year, Amazon downsized its workforce by 5 per cent in the “Buy with Prime” division, indicating a broader trend of restructuring within the company.

(With inputs from agencies)