AWS Layoffs Expand as AI Reshapes Cloud Sector

Amazon Web Services (AWS) has implemented layoffs impacting several teams, including marketing, frontline support, training, and customer specialist roles, as part of efforts to streamline operations and manage rising artificial intelligence (AI) costs. While the company has not disclosed the exact number of job cuts, reports indicate at least hundreds of positions were eliminated, with some staff describing the process as abrupt. CEO Andy Jassy previously cautioned that advances in generative AI and automation would likely result in workforce reductions, a trend now seen across tech companies such as Microsoft and Meta. Despite the layoffs, AWS maintains thousands of open roles and continues to invest in high-priority areas, underscoring its commitment to innovation and leadership in the cloud sector. The restructuring reflects an industry-wide shift as AI adoption transforms job functions and companies seek to balance efficiency with growth. AWS remains a dominant force, reporting $29.3 billion in first-quarter sales, a 17% year-over-year increase.