Team Startupcity

• Layoffs hit multiple AWS teams, including customer specialists, support, training, marketing, analytics, and AI groups
• Amazon affirms restructuring is strategic, not primarily driven by AI
• AWS remains financially resilient Q1 revenue rose 17% to $29.3B despite staff reductions

Amazon has confirmed layoffs affecting hundreds of employees across its Amazon Web Services (AWS) unit. The move is part of a broader company-wide restructuring aimed at streamlining operations and sharpening strategic focus.

The affected teams span customer-facing specialists, frontline support, training and certification, marketing, analytics, and even generative AI teams. While Amazon did not disclose exact numbers, it emphasized the decision followed a “careful review of our company, our priorities, and what we must prioritize moving forward.”

An Amazon spokesperson stated that the company is still investing in innovation, hiring for critical roles, and realigning AWS resources. Impacted employees reportedly received termination notices on Thursday morning, with system access revoked shortly thereafter.

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Although CEO Andy Jassy has previously said generative AI could lead to a reduction in corporate roles, Amazon clarified that these layoffs are primarily the result of strategic restructuring, not AI automation. The company stressed that AWS continues to perform strongly Q1 revenue grew by 17% to $29.3 billion, while operating income rose 23% to $11.5 billion.

This wave of job cuts follows recent layoffs in Amazon’s book publishing, devices and services, and podcast units, signaling a broader push toward operational efficiency under Jassy’s leadership.

Despite the reductions, Amazon maintains that thousands of AWS roles remain open, especially in areas aligned with its long-term strategy.