Amazon Layoffs 2024: What to Know About the Latest AWS Job Cuts (2024)

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Amazon Layoffs 2024: What to Know About the Latest AWS Job Cuts? ›

Amazon will cut hundreds of jobs in its Amazon Web Services (AWS) division. The layoffs will impact “several hundred” sales, marketing and global services (SMGS) roles. In addition, AWS will also cut “a few hundred roles” on the Physical Stores Technology team, the retailer told Digital Commerce 360.

Amazon said it's cutting “several hundred roles” in the AWS sales, marketing and global service organization. Most of those cuts are related to business changes in AWS training and certification programs as well as sales operations.

Amazon 's cloud computing division is laying off hundreds of employees in its physical stores technology and sales and marketing units, the company confirmed Wednesday.

The cuts affect roughly 100 workers ranging from Level 5 to Level 6 management roles. It's worth noting that these aren't major layoffs for Amazon. The 100 job cuts affect less than 1% of its customer service employees worldwide. Even so, they build on previous headcount reductions at the e-commerce company.

Amazon Web Services will cut several hundred jobs in its Sales, Marketing, and Global Services organization, and a few hundred jobs on its Physical Stores Technology team, executives in the tech giant's cloud computing division informed employees Wednesday morning in internal emails.

Amazon will cut hundreds of jobs in its Amazon Web Services (AWS) division. The layoffs will impact “several hundred” sales, marketing and global services (SMGS) roles. In addition, AWS will also cut “a few hundred roles” on the Physical Stores Technology team, the retailer told Digital Commerce 360.

Remember, AWS revenue only accounts for 16.1% of Amazon's total revenue, yet it was responsible for a whopping 74% of the entire company's operating income. Cloud computing carries a high operating margin because selling digital services is a scalable business model.

The amount [of severance] full-time [hourly] employees get offered ranges from $2,000 to $5,000, and depends on how long they have been at the company; if they take the money, they agree to never work for Amazon again.

As of August 2024, Amazon Web Services (AWS) has approximately 130K employees across 6 continents, including North AmericaAsiaEurope.

The last employees to be hired become the first people to be let go. This makes sense logically. If they were recently hired, they probably haven't become as strong of organizational assets yet.

How long do most Amazon employees last? ›

Compensation and benefits are decent, if you stick around long enough. There is a reason why on average, people only last a year.

In fact, some employees are reporting on company Slack channels that their compensation will drop by up to 20% between 2024 and 2025.

From major layoffs at Tesla, Amazon and Microsoft to small fintech startups and apps. The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi.

In addition to the physical stores technology team, Amazon said it's cutting "several hundred roles" in the AWS sales, marketing and global service organization. Most of those cuts are related to business changes in AWS training and certification programs as well as sales operations.

The company offers you $5,000 to walk away. Sounds like a great deal, right? The program, called Pay to Quit, offers Amazon workers who aren't committed to their jobs $2,000 in severance pay in the first year of employment, going up to $5,000 in the fourth year.

How does Amazon treat its employees? Amazon warehouse workers are anxious, depressed, and burned out. Nearly three quarters report feeling pressure to work faster. More than half report that the pace of work makes it hard for them to use the bathroom.

Selipsky, however, said that Amazon has no current plans to spin out its cloud division, stating that “we think that our customers are very well served by having AWS be a part of Amazon.” The AWS boss was speaking in an interview with Bloomberg.

There's an uptick in Amazon employees quitting right now, blaming a strict RTO mandate, layoffs, and 'lack of respect' Amazon employees are posting Slack messages saying they are quitting over a strict RTO mandate.

Endgadget said the information showed that the online retailer has an annual employee turnover rate of 150%—double the industry average—costing the company and its shareholders $8 billion annually.

Security is another major factor driving companies away from the cloud. The Citrix survey highlighted that 33% of organizations cited security issues as a motivator for cloud repatriation. Despite the security measures implemented by cloud providers, many businesses feel more secure managing their own infrastructure.