- Written by Mariko Oi
- business reporter
image source, Getty Images
Technology giant Amazon has announced layoffs affecting hundreds of employees in its cloud computing business.
The company is changing its strategy with the brick-and-mortar store “Amazon Fresh'' launched in 2020.
The company announced Tuesday that it will remove its self-checkout system, called “Just Walk Out,” from all stores.
The company said the layoffs will impact hundreds of roles in sales, marketing and global services, as well as hundreds of roles in its brick-and-mortar technology teams.
An AWS spokesperson told the BBC: “These decisions are difficult but necessary as we continue to invest, hire and optimize our resources to deliver innovation to our customers.”
The company also said it “continues to hire and grow, particularly in core areas of our business,” with thousands of openings available and working to find internal opportunities for employees affected by the role. he added.
Amazon said that while the majority of AWS roles are based in Seattle, the job cuts will occur at its operations around the world.
The company said its U.S.-based employees will receive at least 60 days of pay and benefits, help them find another job, and have access to transitional health benefits. You can also receive retirement benefits.
As of the end of last year, Amazon had more than 1.5 million full-time and part-time employees, excluding contractors and temporary workers.
Amazon has been focusing on artificial intelligence (AI) through AWS, including investing in safety and research startup Anthropic last month.
Tech giants, including Microsoft, which has invested in ChatGPT, are racing to develop AI capabilities.
The tech industry will shed 168,032 jobs in 2023, an increase of 73% from 2022, according to US career consultancy firm Challenger, Gray & Christmas.
