Amazon has laid off employees in its cloud computing and human resources departments. The company's web services (AWS) chief executive officer (CEO) Adam Selipsky in a memo to the employees called it a tough day across the organisation, CNBC reported.
Amazon had carried out a separate round of layoffs this year affecting nearly 18,000 employees.(File/ AP)
The job cuts are a part of the previously announced layoffs expected to impact 9,000 employees. Last week, the company had fired some staffers in the advertising unit. It has also laid off workers in its video games and Twitch livestreaming units in recent days.
According to report, the company had carried out a separate round of layoffs this year affecting nearly 18,000 employees. With the job cuts this month, it is now the largest layoff in Amazon's history. Andy Jassy, the company's CEO has been carrying out cost-cutting measures across the company battles economic downturn and slow growth. Amazon had frozen hiring its corporate workforce, scrapped some experimental projects and also slowed warehouse expansion.
By laying off workers in the advertising and the AWS sections, the online commerce giant has shown that even its most profitable businesses are immune to cost-cutting measures, the CNBC report added. It is another fact that both the sections had witnessed slow growth in recent months.
The CNBC report stated that some teams within the AWS department were included in the earlier round of job cuts. its professional services arm engaged in helping customers troubleshoot issues with cloud infrastructure has been affected by job cuts. The employee headcount in the AWS had increased during the Covid-19 pandemic, turning to be a boon for the company and other cloud providers.
In the memo, Selipsky said that it is critical that the company focusses on identifying and putting the resources behind the top priorities as those things matter to customers and will move the needle for the business. This comes as the company is set to report its first quarter earnings.
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Aryan Prakash
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