Following Microsoft (MS), Google, and Apple, Amazon has also been continuing workforce reductions across various divisions of big tech companies this year.
Amazon Web Services (AWS), Amazon's cloud division, announced on the 3rd (local time) that it will cut hundreds of employees in some departments. The offline store technology team and the sales and marketing departments of AWS are reported to be targeted for layoffs.
An AWS spokesperson explained, "We have identified some organizations that need to be streamlined to focus on key strategic areas," adding, "The company will also spare no effort to support affected employees in finding new roles."
Amazon leads the industry with about a 40% share of the cloud market, but its growth rate significantly slowed last year, allowing competitors like MS and Google to catch up. Having cut 27,000 jobs from late 2022 to early last year, Amazon recently reduced staff in its voice-activated Alexa assistant, Prime Video and Music divisions, and its internet video streaming subsidiary Twitch.
The AWS offline store technology team layoffs came after Amazon announced on the same day that it would remove unmanned checkout systems from its Fresh stores in the U.S. Amazon explained that the 'Dash smart carts,' which automatically track and tally items as shoppers place them in their carts, will replace unmanned checkout counters. The AWS division includes teams overseeing Dash smart carts, palm-based payment technology, and unmanned checkout technology.
Big tech companies are continuing partial trimming this year, though not at the large scale seen last year. MS has cut 1,900 jobs in its gaming division after completing the acquisition of game company Activision Blizzard, and Google is reducing jobs in advertising and YouTube. Apple is reportedly laying off some of the 2,000 employees involved in the electric vehicle Apple Car project, which it abandoned after 10 years of development.
Meanwhile, on the New York Stock Exchange that day, Amazon's stock closed at $182.41, up 0.95% from the previous session.
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