Hundreds of employees across AWS’ sales, marketing, and brick-and-mortar technology development teams will be affected. Credit: Lee Charlie / Shutterstock In a fresh round of layoffs, Amazon is laying off hundreds in the company’s cloud division, Amazon Web Services (AWS). The layoffs will affect AWS’ sales, marketing, and brick-and-mortar technology development teams. This move comes as the company seeks to streamline its operations and focus on areas that deliver a better return on investment. “We’ve identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact,” an AWS spokesperson said in a statement. Amazon’s cloud computing division has long been a key driver of its profitability. However, the company faces intense competition in the cloud computing market, particularly from Microsoft, which has emerged as a formidable rival. In terms of competitive positioning, Microsoft and Google posted strong year-on-year growth, with Microsoft increasing its global market share by nearly two percentage points from the previous year’s fourth quarter, according to a report by Synergy. “Google also saw an increase in its market share. Their fourth-quarter worldwide market shares stood at 24% and 11%, respectively.” Despite maintaining robust double-digit growth rates, market leader Amazon witnessed a decline in its global market share, which “dropped to 31%.” These numbers underscore the intensifying competition in the cloud computing sector and hint at Amazon’s drastic decision to reduce its workforce to maintain profitability. Rethinking physical retail strategy On Tuesday, AWS also downsized its team responsible for developing technology for Amazon’s physical retail stores. This decision follows reports of a shift away from the “Just Walk Out” technology in larger Amazon Fresh grocery stores. In 2018, Amazon introduced cashier-less tech “Just Walk Out” at a Seattle store. The system tracks items shoppers take and charges them automatically. It involves human moderators who review transactions and label footage remotely. Just Walk Out was a pet project of Amazon founder Jeff Bezos. Bezos aimed to differentiate the company in the grocery market and eliminate waiting in lines, which he considered the worst aspect of physical retail. In his 2018 shareholder letter, Bezos expressed the vision of a store where customers could walk in, grab what they needed, and depart without delay. The layoffs will impact a portion of the AWS identity and checkout teams within the Physical Stores Technology organization, wrote Dilip Kumar, vice president of AWS applications, in a message to employees, according to a report by GeekWire. The layoffs follow Amazon’s largest job cut round 14 months prior, which saw 18,000 corporate roles eliminated as part of a cost-cutting drive after a pandemic-induced hiring boom. Amazon has stated that these decisions, though difficult, are necessary to optimize resources and continue delivering innovation for their customers. The company has also committed to supporting affected employees through their transition to new roles within and outside Amazon. This situation underscores the complex decisions companies like Amazon face as they adapt to a rapidly changing business and technological landscape. Related content brandpost Sponsored by DataStax 3 ways to break out of AI ‘pilot purgatory’ Organizations are getting stuck in "use case limbo" with generative AI. It's very similar to the challenges they faced with digital transformation. By Bryan Kirschner May 15, 2024 5 mins Machine Learning Artificial Intelligence feature 10 things to watch out for with open source gen AI Open source generative AI models can be downloaded for free, used at scale without racking up API call costs, and run securely behind corporate firewalls. But don’t let your guard down. Risks still exist and some aren’t only magnified, bu By Maria Korolov May 15, 2024 12 mins CIO Generative AI IT Skills interview How BayCare Health System excels in raising data literacy With 16 hospitals, hundreds of facilities, and 33,000 employees, the Florida-based healthcare system has a significant need for all kinds of data to improve operations, patient experience, and population health. Here, CIO William Walders sits with Ma By Martha Heller May 15, 2024 7 mins CIO Healthcare Industry Data Architecture news analysis EU moves toward regulating data center energy and water use Upcoming regulation on energy efficiency reporting for EU data centers may herald further sustainability mandates — and necessary CIO actions — to come. By Grant Gross May 15, 2024 6 mins Regulation Green IT Data Center PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe