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Amazon Completes AWS Layoffs After Generative AI Efficiency Warning

Termination notices, deactivated access, severance support illustrate AWS’s latest streamlining to fund AI-focused priorities.

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Amazon layoffs
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Overview

  • Amazon confirmed it eliminated hundreds of roles across specific AWS teams following CEO Andy Jassy’s June prediction that generative AI would drive efficiency gains.
  • Affected groups included frontline support, training and certification, and the AWS Worldwide Specialist Organization.
  • Impacted employees received termination emails, had their system access revoked and will receive at least 60 days’ pay, benefits and severance support.
  • AWS posted 17% year-over-year Q1 sales growth to $29.3 billion and a 23% jump in operating income to $11.5 billion despite the cuts.
  • Amazon plans to continue hiring in strategic AI and cloud infrastructure roles with thousands of open positions.