Under heavy pressure from high expenses on AI, Amazon.com, Inc. (AMZN.US) is laying off employees in its cloud computing department AWS.
Amazon (AMZN.US) is laying off employees in its cloud computing department AWS.
Amazon.com, Inc. (AMZN.US) is laying off employees in its cloud computing department AWS, making it the latest major tech company to cut jobs in the face of rising costs in artificial intelligence (AI). Amazon.com, Inc. spokesperson Brad Glasser confirmed on Thursday that the layoffs are affecting multiple teams within AWS.
In an email statement, he said, "After a comprehensive review of our organization, priorities, and areas to focus on in the future, we have had to make the difficult business decision to reduce some positions in certain teams within AWS. These decisions were not made lightly, and we are committed to supporting our employees throughout the transition. These decisions are necessary as we continue to invest, recruit, and optimize resources to provide innovation for our customers."
Amazon.com, Inc. CEO Andy Jassy had previously stated in June that the company expects its workforce to shrink in the coming years as they utilize AI to handle more tasks.
Earlier this month, Microsoft Corporation (MSFT.US), which also heavily invests in AI, began its own round of layoffs affecting approximately 9,000 employees, marking the second major layoff for the company this year.
Sources familiar with the matter say that the Amazon.com, Inc. layoffs will impact hundreds of employees. The company has declined to disclose the specific number of employees being laid off.
As the second largest private employer in the U.S. after Walmart Inc. (WMT.US), Amazon.com, Inc. had 1.56 million employees as of the end of March. While most employees work in warehouses handling packing and shipping, over 350,000 work in various roles within the company.
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