Amazon has confirmed the layoff of several hundred employees in its Amazon Web Services (AWS) division, just weeks after CEO Andy Jassy highlighted that generative AI tools could reduce the need for certain corporate roles. The layoffs, reported initially by Reuters and later corroborated by the company, impact multiple teams within AWS—including its training and certification group.

According to a memo obtained by CNBC, some employees in the affected teams were informed Thursday morning that their positions were being eliminated. A number of staff members shared with Reuters that they had received termination notices via email, and their access to internal systems was swiftly revoked.

While Amazon has not disclosed the exact number of roles cut, a spokesperson said in a statement, “We’ve made the difficult business decision to eliminate some roles across particular teams in AWS. These decisions are necessary as we continue to invest, hire, and optimise resources to deliver innovation for our customers.”

Despite the layoffs, AWS remains a key revenue driver for Amazon. In the first quarter of 2025, AWS reported $29.3 billion in sales—a 17% increase year-over-year—with operating income rising by 23% to $11.5 billion. However, the company continues to focus on cost-efficiency as it adjusts to technological disruptions fueled by AI.

In a recent internal communication, Jassy outlined how AI tools and autonomous agents are expected to take over tasks traditionally managed by human employees. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he stated. While he acknowledged the long-term implications remain unclear, Jassy made it evident that Amazon foresees a gradual reduction in its corporate workforce.

This round of job cuts is part of a broader initiative led by Jassy to streamline operations and minimize organizational bloat. Over the past year, Amazon has implemented smaller rounds of layoffs across various sectors, including its devices and services group, its book retail segment, and its Wondery podcast unit. Since 2022, the company has let go of more than 27,000 employees across departments.

Amazon emphasized that this latest decision was not solely based on its growing investment in AI but formed part of a comprehensive internal review. “We didn’t make these decisions lightly,” said Amazon spokesperson Brad Glasser. “We’re committed to supporting the employees throughout their transition.” The company also noted it would continue hiring in targeted areas within AWS, even as it consolidates others.

In his earlier memo, Jassy referred to artificial intelligence as "one of the biggest technological shifts since the rise of the internet." He urged employees to embrace upskilling in AI to remain relevant in an evolving workplace. Amazon has yet to specify which other departments might undergo further changes or provide a detailed timeline for additional restructuring.