The layoffs impact multiple teams across AWS, including the “specialists” group that works closely with customers to develop new products and promote existing services. Affected staff were notified via email, with immediate revocation of system access.

Despite earlier remarks from Amazon CEO Andy Jassy suggesting that AI advancements could influence workforce size, the company has emphasised that the recent layoffs are not primarily AI-driven.

Instead, Amazon stated these cuts are part of broader efforts to optimise resources amid shifting market conditions.

The move follows a trend among major tech firms facing slowing revenue growth and ongoing economic uncertainty.

Microsoft, Meta and others have also recently announced workforce reductions, often citing similar reasons.

Industry observers note that while AI integration is transforming cloud services, companies like Amazon continue to balance innovation with cost management and operational efficiency.

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