Amazon’s Job Cuts: A Shift in Focus and the Future of AI in the Tech Industry

Amazon, the tech giant, lays off hundreds of employees in cloud computing division

Amazon announced job cuts that will impact hundreds of staff at its cloud computing business as the company shifts its focus to physical stores like Amazon Fresh. The self-checkout system called Just Walk Out will be removed from all stores, impacting several hundred roles in sales, marketing, and global services, as well as a few hundred roles in its physical stores technology team.

The decisions to cut jobs were difficult but necessary as the company continues to invest in innovation for its customers. An AWS spokesperson emphasized that the firm will continue to hire and grow, especially in core areas of its business, with thousands of jobs available.

The cuts will be felt globally, with a majority of AWS roles based in Seattle. US-based employees affected by the job cuts will receive pay and benefits for at least 60 days, assistance in finding another job, access to transitional health benefits, and eligibility for severance pay. As of the end of last year, Amazon had over 1.5 million full-time and part-time employees, excluding contractors and temporary personnel.

In recent years, Amazon has been focusing on artificial intelligence (AI) through its cloud computing service AWS. The company has made significant investments in safety and research start-ups related to AI. Other tech giants like Microsoft are also investing heavily in their AI capabilities, creating competition in the industry. According to US career consultancy Challenger, Gray & Christmas, the tech sector saw an increase of 73% in job cuts in 2023 compared to 2022.

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