Amazon cutting jobs at AWS cloud unit

Amazon (NASDAQ:AMZN) is cutting jobs at its cloud unit Amazon Web Services, a spokesperson for the company confirmed in an email to Seeking Alpha.

“After a thorough review of our organization, our priorities, and what we need to focus on going forward, we’ve made the difficult business decision to eliminate some roles across particular teams in AWS,” said Amazon spokesperson Brad Glasser.

Amazon did not provide an exact number of people who would be impacted by the layoffs.

“These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers,” said Glasser. He added that the company was committed to supporting the employees throughout their transition.

Amazon noted that while it was eliminating roles in parts of these teams, it was also hiring for priorities in other areas. The company is also trying to find internal opportunities for employees whose roles are impacted.

The U.S. tech giant is continuing to hire in core areas of its business and the changes were primarily about prioritization and investing in key strategic areas, according to the company.

The company added that the role reductions are not mainly because of AI and are more related to a review it did on where it thought it could be more streamlined given the results and current priorities.

Employees in the U.S. will receive their pay and benefits for at least the next 60 days, outplacement job search support, access to transitional health benefits, and be eligible for a severance payment. Support in other countries varies, as per the company.

The company added that it was following local processes and regulations, including consultation processes, in countries where applicable.