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Amazon's AWS Suffers Job Cuts After Self-Checkout System Gets Dumped

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By Brennan Forrest - - 5 Mins Read
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Amazon's AWS division has recently announced significant job cuts that will affect a large number of positions across various departments such as sales, marketing, and global services.

This move marks a significant shift in the company's workforce structure, with many employees losing their jobs. 

The decision comes after Amazon's recent decision to discontinue its self-checkout system, Just Walk Out, across all its US-based stores.

The job cuts within AWS are spread across multiple sectors, particularly in sales, marketing, and global services (SMGS).

AWS officials clarified that these restructuring efforts are in response to changing business operations, with a focus on optimizing resources and enhancing operational efficiency.

Notably, redundancies in program management and sales operations have been identified and will be phased out as part of the process.

Amazon has announced plans to make some adjustments within the SMGS and Physical Stores Technology teams.

The company is restructuring roles within the latter team to improve operational effectiveness. Although there will be some workforce reductions, Amazon has promised to support affected employees during their transition period, both within and outside the organization.

Employees affected in the US would receive at least 60 days worth of severance payments as well as health benefits and other addons.

Although challenging, the decision is necessary to position the company for sustained growth and innovation in the retail industry.

Financial Performance and Outlook

AWS, a cornerstone of Amazon's revenue, has maintained high financial performance despite the impending job cuts.

The division reported a 13% revenue growth, reaching $24.2 billion in the fourth fiscal quarter. This shows AWS's resilience as a key revenue driver for the company. 

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CEO Andy Jassy expressed Amazon's commitment to customer satisfaction and highlighted the positive reception of new GenAI capabilities, which reflects a forward-looking approach to technology innovation.

Also read: Former Microsoft Executive Says Working Overtime and Weekends is Perfectly Normal

Transition in Checkout Technology

Amazon announced a transition in its checkout technology. The company revealed plans to replace its Just Walk Out system with Dash Carts in Amazon Fresh grocery stores.

While this might look like a strategic shift in retail technology, it is important to note that it is unrelated to the impending job cuts within AWS. 

Amazon reassured its dedication to innovation in retail operations and enhancing the customer experience through technology-driven solutions.

The impending job cuts within AWS are broader industry trends, with several tech giants implementing similar measures in response to the current market.

Companies like Google, Microsoft, and eBay have also resorted to workforce reductions amid changing economic. 

Amazon's restructuring efforts follow earlier layoffs across its subsidiaries, including Twitch, Prime Video, and MGM Studios. Despite these challenges, Amazon remains steadfast in its commitment to innovation and customer satisfaction.

Amazon's decision to lay off employees from AWS reflects its determination to adapt to changing market conditions and streamline its operations for better efficiency.

Although these measures may pose temporary challenges, Amazon is committed to exploring new opportunities and delivering value to its customers worldwide.