Amazon, one of the leading e-commerce player has confirmed that it is laying off more than 100 employees from its AWS cloud computing unit .Although the company has yet not disclosed the exact number but reports state that the impacted staff have received a termination notices via an email.
According to Reuters, an internal spokesperson noted that these decisions were taken as part of an effort to optimise resources while continuing to invest in innovation.
AI adoption behind job cuts
Andy Jassy, the CEO of Amazon had recently warned that the growing use of generative AI tools is the reason behind the workforce reduction. Many tech companies are now turning to AI agents and automated tools, in order to replace the routine jobs and reduce overheads- further contributing to an increasing number of tech industry layoffs globally.
‘Specialists’ team among the affected
One of the key groups affected is the 'Specialists' team, responsible for working directly with customers to co-create products and promote AWS services.
The layoffs further follow a strong performance from AWS in Q1 2025, with USD 29.3 billion in revenue and USD 11.5 billion in operating income, which marks a 17 per cent and 23 per cent increase, respectively.
Tech layoffs becoming the norm
Amazon’s move is said to be part of a larger trend in the tech industry. Earlier this month, Microsoft laid off 9,000 employees as part of its third round of job cuts in 2025. The cuts affected sales, engineering, and Xbox divisions globally, tied to the company's shift towards AI integration and cost-cutting.
The latest layoffs at Amazon's AWS division highlight the ongoing AI-driven transformation within the global tech industry. As more companies shift towards automation and cost-efficiency, traditional roles are increasingly being re-evaluated. While Amazon continues to post strong financials, the restructuring signals that even thriving segments like AWS are not immune to change. For tech professionals, this serves as a wake-up call to upskill in AI and automation technologies to stay relevant in the evolving job landscape.
