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Amazon Web Services Announces Workforce Reduction

Amazon Web Services (AWS), the cloud computing subsidiary of Amazon.com, confirmed workforce reductions across several departments on Wednesday. This action eliminates several hundred positions within the Sales, Marketing, and Global Services division, as well as the Physical Stores Technology team.

An AWS spokesperson stated the company identified “targeted areas of the organization” requiring streamlining to optimize efficiency. This announcement follows a trend of workforce reductions within Amazon over the past months, impacting divisions such as Prime Video, healthcare, and Alexa.

The job cuts reflect a broader trend within the technology sector. According to Layoffs.fyi, a website tracking industry layoffs, over 57,000 tech workers have lost their jobs across 229 companies in 2024 alone. This follows a period of significant hiring during the pandemic, leading to an overabundance of personnel in some areas.

Industry publication The Information initially reported the development, suggesting the cuts within AWS’ 60,000-person Sales, Marketing, and Global Services division may be part of a larger reorganization under the leadership of Matt Garman, the division’s chief officer.

While AWS faced a growth slowdown in 2023 due to economic uncertainty, recent quarters have shown signs of stabilization. The company even surpassed analyst expectations for quarterly revenue in February.

However, AWS’ position as the industry leader is under increasing pressure from competitor Microsoft. Microsoft has made strategic investments in generative artificial intelligence, such as its partnership with OpenAI, the creator of ChatGPT. This positions them as a potential frontrunner in monetizing this emerging technology.

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