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amazon (NASDAQ:AMZN) Web Services is cutting “several hundred” jobs across its global sales, marketing and services teams and a few hundred employees across its brick-and-mortar technology team as the cloud computing giant shifts its focus .
Most of the Job cuts in sales, marketing and services are in sales training, certification and operations, Geekwire. amazon-web-services-cuts-hundreds-of-jobs-in-sales-training-and-physical-stores-technology/” target=”_blank” class=”paywall-full-content invisible”>reported, citing an internal email. AWS moves toward self-service and third-party digital training.
“We don't make these decisions lightly and I know change can be difficult,” Matt Garman, senior vice president at AWS, wrote in the memo obtained by the news outlet. “We operate in an industry that evolves incredibly quickly and it is important that we remain agile as an organization.”
An amazon Web Services spokesperson confirmed the cuts to Seeking Alpha, noting that they will be made in “some specific areas” as it seeks to focus on “key strategic areas that we believe will generate maximum impact.”
The spokesperson added that AWS is hiring based on priorities in other areas and that internal opportunities are possibilities for some of the employees whose roles are affected.
Employees affected by the U.S. layoffs will receive their pay and benefits for the next 60 days and will be eligible for job search support, access to transitional health benefits and severance pay.
amazon follows local rules and regulations in other countries where applicable.
Share rose 0.8% in midday trading on Wednesday.
The job cuts to the brick-and-mortar technology team come after the company shelved its “Just Walk Out” technology in some of its grocery stores.
“We've heard from customers that while they enjoyed the benefit of skipping the checkout line with Just Walk Out, they also wanted to be able to easily find nearby products and deals, see their receipt while they shop, and know how much money they saved while shopping in-store.” , another company spokesperson told Looking Alpha in response to the move.
amazon Fresh stores will replace grab-and-go technology with Dash Carts, which will allow shoppers to track their spending by scanning items as they go, while still avoiding checkout lines. They can still opt for self-checkout lines or pay at ATMs.
Of the 44 amazon Fresh stores in the US, 27 use 'Just Walk Out', which relies on cameras and sensors on the shelves.
amazon has made several cuts to its workforce in 2024 so far, including in its healthcare and media divisions, including its streaming service Twitch. Last year, the company cut jobs across the Audible, Prime Video, Twitch and Buy with Prime divisions, with job cuts between 2022 and 2023 amounting to approximately 27,000.
(This story has been updated to include a comment from amazon.)
