AWS Cuts Hundreds of Jobs Amid Surge in AI Investment Under CEO Andy Jassy
Published on 7.20.25
Amazon's cloud-computing division, Amazon Web Services (AWS), is undergoing significant changes as the company adapts to the growing threat of artificial intelligence. As part of this effort, hundreds of jobs have been cut in various teams within AWS, including its training unit.
This move follows a warning from CEO Andy Jassy that the adoption of generative AI tools would lead to workforce reductions. The layoffs were announced by company spokesperson Brad Glasser and come as part of a broader trend of job cuts among major tech companies.
Despite this, AWS continues to invest in innovation, with sales rising 17% to $29.3 billion in the first quarter. This growth is likely driven by the increasing demand for cloud computing services, which are essential for developing and deploying AI technologies.
The acquisition of Scale AI, a company that provides AI training data and infrastructure, suggests that Amazon is committed to investing in AI capabilities, but may be streamlining its internal operations to optimize costs.