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In another wave of restructuring, Amazon is set to cut hundreds of jobs, primarily in its cloud division. The news, initially reported by Geekwire, adds to the series of Amazon layoffs the tech giant implemented over the past year.

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Amazon Layoffs

The imminent layoffs primarily target the cloud division, Amazon Web Services (AWS) with notices expected to be sent out to affected employees soon.

This move follows closely on the heels of Amazon's recent elimination of approximately 160 advertising roles. Furthermore, earlier in the year, hundreds of jobs were slashed across its Prime Video and healthcare units.

Specifically, sales and marketing personnel, as well as the team dedicated to developing technology for retail stores, are anticipated to be impacted.

Matt Garman, the Senior Vice President of sales and marketing at AWS, conveyed in an email that the decision to reduce roles across specific Sales, Marketing, and Global Services (SMGS) organizations was a difficult yet necessary one.

Areas of the Company Targeted

Amazon's restructuring efforts extend beyond its cloud division. The company is scheduled to continue layoffs within its advertising business, as well. 

Internal documents from Amazon's HR department have revealed a surge in employees being put on Performance Improvement Plans (PIPs) during a period marked by record layoffs.

The leaks from Walmart Global Tech also shed light on over a dozen 'major incidents' reported within the quarter, underlining the broader challenges in the retail-tech landscape.

A spokesperson for Amazon emphasized the strategic rationale behind these decisions, stating, "We've identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact."

2023 Layoffs

The current layoffs are part of Amazon's ongoing cost-cutting strategy, which gained momentum in 2023. Last year, the company witnessed its largest workforce reduction in history.

CEO Andy Jassy oversaw plans to eliminate 18,000 roles, primarily concentrated in Amazon Stores and People Experience and Technology Solutions divisions.

An internal HR document from the previous year underscored Amazon's approach, revealing an increase in the number of employees placed on performance-improvement plans during the mass layoffs.

As Amazon navigates through these changes, the company remains committed to supporting affected employees in transitioning to new roles, both within and outside the organization. 

These decisions, while challenging, are deemed necessary as Amazon continues to invest, hire, and optimize resources to drive innovation for its customers.