AWS lays off numerous employees in response to customers’ ongoing cloud cost-cutting efforts, aiming to address inefficiencies.

Amazon Web Services (AWS) has announced another round of job cuts, affecting several hundred tech and sales employees. The decision was communicated via email by AWS senior vice-president Matt Garman. The areas most affected are training, certification, and sales operations. AWS plans to outsource its training programs to external third parties and focus more on self-study certifications. Garman stated that the changes are aimed at preparing the organization for the future, aligning with its strategy, and reducing duplication and inefficiency. AWS spokesperson further emphasized that the decision was made to streamline the organization and focus on key strategic areas. The company is committed to supporting employees during their transition to new roles. The job cuts reflect Amazon’s response to competition and changing customer attitudes in the cloud market, as more customers prioritize cost optimization. AWS has been adapting to customers’ cost-cutting efforts and the moderation of demand, while competitors like Microsoft Azure and Oracle Cloud Infrastructure gain traction. AWS itself has invested in the AI space, including a minority stake in AI safety startup Anthropic.