Amazon has been in the news recently for firing employees across a number of its departments. It was revealed a few days ago that the IT giant might not raise the basic salary of several of its senior staff members this year. And now the business has revealed that hundreds of workers from AWS, its cloud computing division, will be let go.

AWS is reportedly going through a major reorganization that would result in the termination of hundreds of workers from its technology, sales, and marketing, and physical retail divisions. An AWS representative stated that this change represents a strategy realignment towards key emphasis areas. The business is dedicated to helping affected workers move into other positions, but these layoffs coincide with a more general change in how apps are used in both Amazon-owned and third-party marketplaces.

Many hundreds of workers are fired by Amazon Web Services

AWS senior vice president Matt Garman reportedly stated in a Geekwire article that the firm does not make these choices lightly and that he is aware that "change can be difficult." Our industry moves quite quickly, therefore it's critical that our organization maintains its agility. Our adjustments are aimed at future-proofing the organization, harmonizing it with our aims and strategy, and cutting down on waste and inefficiencies. I understand the impact this has on each and every person affected," he continued. The layoffs will impact certain teams inside the Physical Stores Technology department at AWS that handle identity and checkout activities, according to a second message sent to staff by Dilip Kumar, Vice President of AWS Applications.

"The introduction of authentication and checkout technology in our big scale Amazon Fresh shops has taught us a lot, and we have positive consumer feedback to guide our future initiatives. Along with extending our third-party locations, we are also expanding our identity and checkout technologies in smaller-format 1P [first-party] businesses," he continued.

AWS, however, stated that it is looking for internal options for its laid-off workers since it has thousands of open positions. The company also states that it will keep employing in other areas of the business, according to the Geekwire story.

Amazon's continuous reorganization efforts, which started with significant layoffs in 2022 and lasted into 2023, affecting numerous company areas, including Twitch, Audible, and Prime Video, are entering a new phase with these job cutbacks. Notwithstanding these difficulties, workers affected by the recent layoffs in the US will be eligible for severance payments and will continue to be paid for at least 60 days.