Amazon has laid off several hundred employees within its Amazon Web Services (AWS) division as part of an internal restructuring effort. The job cuts, confirmed by a company spokesperson, affected multiple teams across AWS, including staff who work directly with clients on service deployment and custom product development.
The company stated that the decision followed a thorough review of business priorities and resource allocation within the cloud unit. While Amazon emphasized its continued investment in high-growth areas, it acknowledged that certain roles had been eliminated to improve efficiency and focus. The layoffs took place on July 17, with impacted staff notified via email and access systems disabled shortly after.
Also read: Microsoft Plans More Layoffs, Focuses on Engineers
According to reports, a team known as “specialists”—tasked with assisting customers in ideating and implementing new AWS solutions—was among the hardest hit. Though the total number of roles cut has not been officially disclosed, the move aligns Amazon with other major tech players that have announced job reductions in 2025, including Microsoft, Meta, and CrowdStrike.
AI not the reason, but remains part of future workforce plans
Despite CEO Andy Jassy previously signalling that AI adoption could reduce the size of Amazon’s corporate workforce, the company has stated that the current layoffs were unrelated to artificial intelligence. Instead, the changes stem from a standard business review to streamline operations and redirect focus to areas with greater growth potential.
Amazon noted that hiring continues in several parts of AWS, especially in teams working on generative AI, cloud innovation, and infrastructure scaling. The company maintains that workers who embrace AI technologies will play a pivotal role in shaping its future.
Industry-wide, the conversation around AI-driven disruption remains active. Recent research from PYMNTS Intelligence indicates that 54% of employees believe generative AI poses a serious risk to job security, even as 38% worry about their specific roles being replaced.
