Amazon trims workforce in Cloud Division AWS citing rising AI-driven costs: Report
Amazon.com Inc. has begun cutting jobs in its cloud-computing division, Amazon Web Services (AWS), as the tech giant recalibrates its priorities in the face of growing artificial intelligence-related expenses, as per a report.
According to a statement provided to Bloomberg by company spokesperson Brad Glasser on Thursday, the layoffs are affecting several teams within AWS, the world's largest cloud services provider.
Company statement on layoffs
“After a thorough review of our organization, our priorities, and what we need to focus on going forward, we’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” Glasser said via email, as per the news outlet. “We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition.”
Streamlining while innovating
The job cuts are part of a broader effort to streamline operations while continuing to invest in innovation. “These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers,” Glasser added, as per the news publication.
CEO Jassy forewarned reductions
Amazon CEO Andy Jassy had signaled this direction earlier. In June, he stated that the company expects a reduction in its workforce over the coming years as it leverages artificial intelligence to automate a growing number of internal tasks.
Amazon is the latest among major tech companies to trim headcount in response to the shifting cost dynamics of AI development and deployment, underscoring the complex tradeoffs between automation, innovation, and human capital.
As of the end of March, Amazon reportedly was the second-largest private employer in the US after Walmart Inc., with a total workforce of 1.56 million. While the majority are warehouse employees handling packing and shipping, over 350,000 hold corporate positions.
Microsoft also trims workforce
Earlier this month, Microsoft Corp. — another tech giant heavily investing in AI — initiated a new round of layoffs affecting approximately 9,000 employees, marking its second significant workforce reduction this year.