Amazon AWS Cuts Hundreds Jobs Amid AI Restructuring

Amazon Web Services (AWS) is undergoing a strategic workforce realignment involving layoffs in several teams, including client-facing specialists, as part of a broader effort to optimize resources amid the growing influence of generative artificial intelligence. While several hundred employees were reportedly let go, Amazon emphasized that affected U.S. employees will retain pay and benefits for at least sixty days and receive job-search support, with efforts to reassign staff internally where possible. Despite these cuts, Amazon continues to hire aggressively in core business areas, affirming its commitment to long-term investments in AI and growth sectors. This restructuring aligns with CEO Andy Jassy's acknowledgment that AI advancements are reducing the need for certain roles within AWS. Concurrently, AWS remains a critical driver of Amazon's market performance, exemplified by recent collaborations to enhance generative AI capabilities that have contributed to significant stock gains and investor confidence. The company is balancing workforce efficiency with innovation, aiming to sharpen focus on strategic priorities and sustain its growth trajectory in cloud services.