Amazon will cut a whole bunch of jobs in its Amazon Web Services (AWS) division. The layoffs will impact “several hundred” sales, marketing and global services (SMGS) roles. As well as, AWS can even cut “just a few hundred roles” on the Physical Stores Technology team, the retailer told Digital Commerce 360.
Amazon ranks No. 1 within the Top 1000, Digital Commerce 360’s database of the biggest North American online retailers. It’s also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by third-party GMV.
AWS areas impacted by job cuts
The SMGS layoffs are primarily related to business changes in Training & Certification and Sales, Amazon said. AWS is prioritizing self-service in digital training, resulting in job cuts. It also found duplicate jobs across program management and sales operations, which will likely be eliminated. Other job cuts are because of reinvestments and streamlining teams, it said.
The Physical Stores Technology cuts are a part of a “broader strategic shift” in Amazon and third-party stores, the business said.
“We’ve identified just a few targeted areas of the organization we want to streamline as a way to proceed focusing our efforts on the important thing strategic areas that we consider will deliver maximum impact,” an AWS spokesperson said in a written statement. “We didn’t make these decisions flippantly, and we’re committed to supporting the staff throughout their transition to recent roles in and outdoors of Amazon. These decisions are difficult but vital as we proceed to take a position, hire, and optimize resources to deliver innovation for our customers.”
Amazon said it continues to be hiring in other areas, with hundreds of AWS jobs posted currently.
AWS results
AWS revenue grew 13% to $24.2 billion in its fourth fiscal quarter ended Dec. 31. The segment recorded an operating income of $7.2 billion within the quarter, in comparison with $5.2 billion within the year-ago period.
For the complete fiscal 12 months, AWS revenue also grew 13%. It reached $90.8 billion.
“AWS’s continued long-term concentrate on customers and have delivery, coupled with recent GenAI capabilities like Bedrock, Q, and Trainium, have resonated with customers and are beginning to be reflected in our overall results,” CEO Andy Jassy said in a press release on the time.
Amazon replaces Just Walk Out technology
Similtaneously the news of the AWS layoffs, Amazon also shared that it’s going to remove its Just Walk Out checkout technology from its Amazon Fresh grocery stores. It would replace them with Dash Carts, Amazon’s smart shopping carts.
The job cuts should not related to the Just Walk Out technology changes, an Amazon spokesperson said.
Just Walk Out technology will proceed to be utilized in Amazon Go stores, Amazon Fresh stores within the U.K., and amongst third-party retailers.
Other Amazon job cuts
Amazon announced it could lay off about 5% of its Buy with Prime unit in January, impacting about 30 staff.
Buy with Prime gives retailers access to Amazon’s success and logistics network and payments system for products not listed on Amazon. Within the week preceding the layoffs, Amazon announced a brand new integration for the service for Salesforce clients.
“Buy with Prime is a top priority for Amazon, with strong adoption from merchants and positive feedback from customers, and we’ll proceed investing significant resources in Buy with Prime to construct on that momentum,” a spokesperson said in a press release. “We’re grateful to those employees for his or her contributions, and we’re focused on supporting them of their next steps.”
Amazon also laid off 500 staff at streaming platform Twitch and a whole bunch of employees at Prime Video earlier in January.
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