Amazon's cloud computing division reveals job cuts amid slowing growth
(MENAFN) Amazon.com, the prominent American technology and e-commerce giant, has made the decision to eliminate numerous positions within its cloud computing sector, encompassing roles in sales, marketing, and the development team responsible for technologies utilized in physical stores. A spokesperson for Amazon Web Services (AWS), the company's cloud computing division, emphasized the need to streamline organizational structures to better align with strategic priorities and maximize impact. While acknowledging the impact on affected employees, the company has pledged to explore opportunities for their transition into alternative roles within the organization.
The move comes amidst a noticeable deceleration in the sales growth of AWS, which stands as the leading provider of cloud computing services and data storage rentals. Factors contributing to this slowdown include budget constraints among client companies and delays in technology modernization projects. Bloomberg News Agency reports that this year has witnessed AWS experiencing its lowest pace of sales growth on record.
These recent layoffs mark the continuation of a trend initiated approximately a year ago when AWS undertook its largest-ever round of job cuts. This initiative was part of a broader cost-cutting strategy that saw approximately 27,000 positions eliminated across the Amazon group. This significant reduction followed a period of robust hiring during the height of the COVID-19 pandemic, which saw unprecedented growth for e-commerce and technology companies. Subsequent waves of job reductions have impacted various sectors within Amazon, including divisions responsible for digital assistant Alexa, Prime Video and music production, healthcare initiatives, and even positions at the live broadcasting company Twitch.
The decision underscores Amazon's ongoing efforts to adapt to evolving market conditions and optimize operational efficiency. While the company remains committed to its strategic objectives, including continued investment in key areas, these workforce adjustments reflect a broader recalibration in response to shifting industry dynamics and economic realities.
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