Cloud computing division lays off hundreds of employees

Attendees walk through the exhibit hall during the Amazon Web Services Reinvent conference at the Venetian Hotel in Las Vegas on November 29, 2022.

Noah Berger | Getty Images Entertainment | Getty Images

AmazonThe company confirmed Wednesday that its cloud computing unit will lay off hundreds of employees in store technology, sales and marketing.

“We have identified a number of target areas in our organization that require streamlining in order to continue to focus our efforts on key strategic areas where we believe we will have the greatest impact,” an Amazon Web Services spokesperson said in a statement. “We have not These decisions are not made lightly, and we are committed to supporting employees throughout their transition to new roles inside and outside Amazon.”

This reduction was initially made by geek line.

Sales growth at Amazon’s lucrative AWS unit has slowed in recent quarters as companies cut back on cloud spending amid rising interest rates. Amazon executives expressed some optimism in February, saying the market was starting to show signs of reaccelerating.

The AWS Stores technology team is being laid off after Amazon said it would eliminate its cashierless checkout system at its U.S. grocery stores. The AWS division includes teams overseeing cashierless technology called Just Walk Out, Dash smart shopping carts and payment technology based on the Amazon One handheld computer. The store technology team will be moved out of Amazon’s retail group in 2022 and integrated into its cloud computing department.

An AWS spokesperson said the company decided to cut staff in its store technology department “due to a broader strategic shift in the use of certain applications in Amazon’s own stores and third-party stores.”

After more than a year of massive layoffs, Amazon continues to lay off employees. Starting at the end of 2022 and continuing into 2023, Amazon launched the largest layoff plan in history, laying off more than 27,000 people in almost every area of the company. So far this year, Amazon has laid off employees across its Twitch, Audible, Buy with Prime, Prime Video and MGM Studios divisions.

U.S. employees will continue to receive pay and benefits for at least 60 days and are eligible for severance pay.