In a significant move to streamline its cloud operations, Amazon has laid off several hundred employees across its Amazon Web Services division as part of an internal restructuring strategy. The layoffs, confirmed by multiple reports and internal sources, span across various departments including customer support, training, sales specialization, analytics, and AI-enablement teams.

AWS, which remains a key profit driver for Amazon, has seen consistent revenue growth—reporting a 17% year-over-year increase in Q1 2025, reaching $29.3 billion in sales. Despite this robust performance, the company is re-evaluating its organizational structure to eliminate inefficiencies and flatten management hierarchies.

Amazon clarified that the layoffs are not primarily driven by artificial intelligence advancements, although the company acknowledges the transformative impact of generative AI on business functions. CEO Andy Jassy has previously highlighted how AI technologies could eventually reduce demand for some white-collar roles, but the recent cuts are said to be more closely tied to strategic realignment and cost optimization.

Sources within the organization revealed that employees from the “specialist” customer-facing teams were among the most affected, with several roles being absorbed into broader functional units. The layoffs also touched teams responsible for internal training and enablement, areas that may see new models of automation and AI integration going forward. Employees impacted by the downsizing have reportedly received 60 days of pay and benefits, healthcare coverage, job placement services, and in some cases, redeployment opportunities within other Amazon business units.

This move follows a broader wave of job cuts at Amazon across different verticals such as devices, media, and consumer experience arms, reflecting a company-wide shift toward leaner operations in a changing economic and technological landscape. As competition in the cloud services sector intensifies, especially with Microsoft Azure and Google Cloud gaining momentum, Amazon’s restructuring may signal a new era of operational focus—balancing innovation with efficiency in its global cloud leadership.