Amazon slashing hundreds of jobs at AWS cloud unit — month after CEO says AI will spur layoffs: report

Core Insights - Amazon has cut hundreds of jobs in its Amazon Web Services (AWS) unit, following a warning from CEO Andy Jassy about workforce reductions due to the adoption of generative AI tools [1][5] - The company confirmed job cuts but did not disclose specific numbers, joining other firms like Microsoft and Meta in announcing layoffs this year [2][3] Group 1: Job Cuts and Workforce Changes - The layoffs affected various groups within AWS, including a team known as "specialists," who assist customers in developing new product ideas and selling existing services [4][7] - Employees received termination emails, and their access to company systems was deactivated shortly after [4] - Amazon has been implementing gradual job cuts across different divisions, including its books, devices, and services unit, as well as the Wondery podcast division [7] Group 2: Financial Performance - AWS sales increased by 17% year-over-year in the first quarter, reaching $29.3 billion, while operating income rose by 23% to $11.5 billion [3] Group 3: Strategic Direction - The company is focusing on reducing bureaucracy and optimizing resources to enhance innovation for customers, as stated by an Amazon spokesperson [3][7]