Amazon has announced that it will cut hundreds of jobs at its cloud computing sector, Amazon Web Services (AWS).

Despite making up 14% of Amazon’s total revenue, as per its latest financial report, Amazon is shifting its strategies to focus on its physical Amazon Fresh stores.

The latest round of layoffs are set to effect hundreds of roles across global services, sales, marketing.

Several hundred roles in the technology teams of its physical stores will also be cut, as the company phases out its self-checkout system, Just Walk Out, from its stores.

While the cuts will be global, the majority of AWS roles are based in Seattle – employees based in the US can expect 60 days of pay and benefits, aid in finding alternative employment, and access to health care during their transition, and can also be eligible for severance.

The new round of layoffs follow a recent bout of cuts in January, in which Amazon cut hundreds of jobs across Twitch, Prime Video, and MGM studies. A third of Twitch’s workforce were cut, equalling about 500 employees losing their jobs.

Recommended reading

• Amazon to Cut 9,000 Jobs in Latest Round of Layoffs
• Big Tech Layoffs | What You Need to Know
• Twitch to Lay Off 35% of Its Staff

According to layoffs.fyi, there have already been 57,505 tech employee layoffs in 2024 across 229 companies globally.

In 2023, Amazon cut 27,000 jobs in what was potentially one of the largest rounds of layoffs in history.

Despite Amazon’s continued growth, its sales in data storage and cloud computing slowed last year to a record low as budgetary constraints halted cloud adoption and digital transformation initiatives.