Amazon has confirmed a new round of layoffs, this time targeting its Amazon Web Services (AWS) division.
At least several hundred employees were dismissed on Thursday, according to insider accounts, as the company boosts its transition towards artificial intelligence-driven operations.
While Amazon declined to disclose the exact number affected, a spokesperson admitted in a formal statement to Reuters: “We’ve made the difficult business decision to eliminate some roles across particular teams in AWS. These decisions are necessary as we continue to invest, hire, and optimise resources to deliver innovation for our customers.”
The cuts hit multiple AWS teams, including customer support, training and certification units, and notably, the “specialists” group. These specialists are responsible for helping clients develop new products and solutions using Amazon’s cloud services.
Reports reveal employees received termination emails early Thursday morning. Their system access was revoked immediately, in what some described as abrupt and disorienting exits.
This move follows warnings from Amazon CEO Andy Jassy, who had previously flagged that generative AI tools and autonomous agents would reshape the company’s workforce needs.
Jassy has been candid about the company’s strategy to streamline operations, reduce unnecessary management layers, and change focus towards high-growth segments like cloud infrastructure and AI solutions.
Amazon’s latest layoff aligns with others including Microsoft, Meta, Salesforce, and Intel have all cut jobs this year as AI continues to displace traditional roles. Since 2022, Amazon alone has eliminated over 27,000 corporate positions, including recent reductions in its books, devices, and podcast arms.
Nonetheless, AWS still drives Amazon’s profit more than other arms. The division posted $29.3 billion in sales for the first quarter of 2025, a 17% year-on-year increase, and reported $11.5 billion in operating income.
But with this, growth is slowing compared to previous years. This has prompted management to reassess headcount and focus hiring on AI-related positions.
Internally, Amazon has been embedding AI across its operations, including Alexa, shopping assistants, logistics and developer tools. Developers have reportedly saved over 450,000 hours using AI systems for technical work.
While Amazon says growth areas will create new roles later on, current job layoffs at AWS show a transitional period where cost savings and automation are taking priority over personnel retention.
