Amazon AWS Lays Off Hundreds of Employees as Generative AI Reshapes Workforce
Amazon Web Services (AWS), the cloud computing division of Amazon, has cut at least hundreds of jobs, according to sources cited on Thursday. The layoffs come just weeks after CEO Andy Jassy signalled workforce reductions tied to the growing adoption of generative AI tools.
AWS Layoffs: What We Know
- Scope: At least hundreds of roles eliminated within AWS, affecting several internal teams.
- Confirmed by Amazon: The company acknowledged the layoffs but did not disclose the exact number.
- Teams Affected: Includes AWS “specialists,” who work directly with customers on product development and service sales. Other groups within AWS were also impacted.
An Amazon spokesperson stated:
“We’ve made the difficult business decision to eliminate some roles across particular teams in AWS. These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers.”
Why Is Amazon Cutting AWS Jobs?
According to Amazon’s leadership, the job cuts are driven by:
- Increased reliance on generative AI tools for software development and task automation.
- A broader strategy to reduce bureaucracy and streamline management layers.
- A focus on cost-saving measures while continuing to invest in high-growth areas like AI and cloud services.
AWS Financial Performance Amid Layoffs
Despite the job cuts, AWS reported strong results for Q1 2025:
- 17% sales growth to $29.3 billion compared to Q1 2024.
- 23% increase in operating income to $11.5 billion.
The decision highlights Amazon’s balancing act between maintaining financial growth and optimising its workforce in response to evolving technologies.
Broader Amazon Layoffs and Restructuring
AWS is not the only division affected. Amazon has been making piecemeal job cuts across several business units, including:
- Books division
- Devices and services unit
- Wondery podcast division
CEO Andy Jassy has openly discussed efforts to eliminate what he describes as “excess bureaucracy,” reducing the number of managers and flattening organisational structures.
Impact on AWS Employees
Several AWS employees reported receiving termination emails on Thursday morning, with immediate deactivation of their company computers. While the full extent of the layoffs remains unclear, the move reflects a larger industry trend.
Other major tech companies, including Microsoft, Meta, and CrowdStrike, have also announced layoffs in 2025, largely citing AI-driven efficiencies.
Key Takeaways:
- Layoffs: At least hundreds of AWS jobs have been cut as of July 2025.
- Reason: Generative AI adoption, cost optimisation, and management restructuring.
- AWS Q1 2025 Results: $29.3 billion in sales, $11.5 billion in operating income.
- Broader Trend: Part of ongoing tech industry layoffs driven by AI adoption.
