Latest Amazon Layoffs Impacting 9,000 Workers, Including AWS

Amazon on Monday confirmed more layoffs impacting 9,000 workers, including many in Amazon Web Services (AWS). The internet giant in January initiated layoffs impacting 18,000 employees.

In addition, more layoffs are likely as Amazon continues its workforce analysis.

Amazon CEO Andy Jassy detailed the latest layoffs in a message to Amazon employees. They are impacting AWS, the People eXperience and Technology (PXT) group, advertising, and its Twitch live streaming service. The layoffs will happen over the next few weeks.

Amazon isn’t commenting beyond Jassy’s message to workers.

AWS implemented a hiring freeze last year which it has yet to lift.

Amazon Layoffs Part of Streamlining

Amazon’s Andy Jassy

“For several years leading up to this one, most of our businesses added a significant amount of headcount,” Jassy said. “This made sense given what was happening in our businesses and the economy as a whole. However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount. The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole.”

These latest layoffs resulted from Amazon teams’ latest analyses regarding prioritizing investments, he said. And impacted teams are not yet finished making final decisions on future job cuts.

“Once those decisions have been made (our goal is to have this complete by mid-to-late April), we will communicate with the impacted employees (or where applicable in Europe, with employee representative bodies),” Jassy said. “We will, of course, support those we have to let go, and will provide packages that include a separation payment, transitional health insurance benefits and external job placement support.”

Being leaner will allow Amazon to “still invest robustly in the key long-term customer experiences that we believe can meaningfully improve customers’ lives and Amazon as a whole,” he said.

“I believe the result of this year’s planning cycle is a plan that accomplishes this objective,” Jassy said. “I remain very optimistic about the future and the myriad of opportunities we have, both in our largest businesses, stores and AWS, and our newer customer experiences and businesses in which we’re investing.”

Public Cloud Spending Slowing, But Still Significant

As was reported last month, public cloud spending is slowing, but rumors of a collapse are greatly exaggerated. Both Amazon and Alphabet – the respective owners of AWS and Google Cloud – reported fourth-quarter 2022 earnings. As analysts and observers had forecast, each showed flagging cloud revenue amid tough economic challenges.

Any drops in public cloud spending were not as deep as observers might have feared. While they no longer are hitting the consistent 30% quarter-over-quarter gains experienced in recent years, the numbers remain significant.