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Amazon Inc. is cutting hundreds of job roles in its cloud computing unit, Amazon Web Services. The US-based e-commerce and technology company is reducing its workforce at AWS as part of a strategic shift.
According to BBC News, Amazon has changed its growth strategy, and due to this shift, it has been slowly transitioning from online to physical stores of its brands, such as Amazon Fresh, which was introduced in 2020. This move led to the company’s decision to cut out roles at its AWS division.
Throwing Out Automation in Amazon Stores
Earlier this week, Amazon confirmed it will no longer use the “Just Walk Out” self-checkout system and that these will be taken out from all of its physical stores. Since the company is getting rid of the system, employees managing or processing the operations of the automated self-checkout are affected as the move leaves them with no more jobs to do.
Moreover, the company said its latest job reduction will cut several hundred roles in marketing, sales, and global services. Hundreds will also come from Amazon’s brick-and-mortar stores’ tech teams. While the layoffs impact the global workforce, the majority of the roles are in Seattle, the company's home base.
"These decisions are difficult but necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers," the spokesman of AWS, Duncan Neasham, told BBC.
Compensations for Employees
NPR reported that the layoffs at Amazon Web Services followed other job cuts within the Amazon organization this year. Earlier this year, the company terminated hundreds of positions from its MGM Studios and Prime Video subsidiaries. It also laid off employees in its Twitch social media platform to save on costs.
Meanwhile, Amazon said that all workers in the U.S. will still receive their salaries and benefits for at least 60 days. It will also support them in finding new jobs, give them access to transitional health benefits, and make them eligible for severance pay.
Photo by: Christian Wiediger/Unsplash
