Amazon Layoffs 10% of Staff

In July 2025, Amazon made headlines with a significant decision to reduce its workforce by laying off nearly 10% of its staff across several divisions. The cuts were especially felt in the Amazon Web Services (AWS) Cloud division — a core part of Amazon’s business.

What is AWS Cloud?

Amazon Web Services (AWS) is Amazon’s cloud computing platform that provides a wide range of services such as storage, networking, database management, artificial intelligence, and machine learning tools to businesses and individuals. It powers many major websites and applications across the internet and is considered a leader in the cloud computing market.

AWS allows companies to scale their infrastructure on-demand without the need for owning physical hardware. It’s used by startups, enterprises, and even governments to build, host, and manage digital applications and services.

Jobs Cut Across AWS Cloud Division

The majority of the layoffs were centered in the AWS division, especially in sales, support, and operations roles. Despite AWS being a profitable segment, internal restructuring and the changing dynamics of the cloud industry prompted these changes.

According to internal sources, several product and business development teams were also affected, as Amazon shifts its focus toward high-margin services like AI-driven infrastructure and cost-optimization for enterprise clients.

 

Main Reasons for the Job Cuts

• Slowdown in Cloud Spending: Many companies have reduced their cloud budgets amid economic uncertainty, leading to slower revenue growth for AWS.
• Focus on AI and Efficiency: Amazon is aggressively investing in AI infrastructure, and job roles not aligned with this strategic direction are being re-evaluated.
• Global Economic Pressures: Inflation, high interest rates, and cautious enterprise spending have affected growth projections.
• Internal Reorganization: Amazon is streamlining overlapping roles and flattening the organizational structure to improve speed and efficiency.

Top FAQs

Why is Amazon laying off employees despite being profitable?

Amazon is restructuring to align with changing market dynamics, shifting focus toward AI and high-margin cloud services. Profitability alone doesn’t guarantee job security if roles become redundant or misaligned with strategic goals.

Will AWS customers be affected by these layoffs?

No major disruptions are expected for customers. Amazon has assured clients that the restructuring will not impact AWS service quality or availability.

Is this the first time Amazon has laid off employees?

No, Amazon has executed several rounds of layoffs in recent years, particularly after its rapid hiring during the COVID-19 pandemic. However, the July 2025 layoffs are among the largest in recent times.

Are other tech companies also laying off workers?

Yes, several tech giants including Google, Microsoft, and Meta have also announced layoffs in 2025 as they adjust to post-pandemic market realities and shifting business priorities.