Amazon Layoffs Signal Changes in Its Retail Business

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Amazon Web Services, which builds tech for the company and outside brands, lays off hundreds. It's the latest sign of change for the retail apparatus.

sheared hundreds of workers from its cloud division — a crucial business unit that builds tech for the company’s commerce operation, as well as those of outside retailers and brands.Web Services are positions in sales, marketing and global services, in addition to a few hundred roles from its Physical Storesteam. The revelation came from internal emails leaked to Geekwire on Wednesday. WWD confirmed the news directly with the company.seeks to eliminate duplication in the workforce.

That Amazon would pay particular attention to its cloud unit is hardly a surprise. At the time, chief financial officer Brian Olsavsky said AWS saw growth slow over the past year, primarily due clients’ own cost-cutting. On the other hand, he also said that work was picking up. The reason: The artificial intelligence boom. According to Olsavsky, AWS saw “a lot of interest” in its generative AI offerings, such as the Q chatbot for businesses.

Its most visible efforts may be on the consumer front with launches like the Rufus AI shopping assistant. Meanwhile, it’s busy trying to break newto scanning terminals. Hand-scanning tech looks positioned to take the place of Amazon’s camera-and-sensor-based “just walk out” system — which, according to recent reports, it is backing away from its grocery businesses.team will surely see some impact from scrubbing hundreds of jobs.

Altogether, the details paint a picture of Amazon retail being in flux, and how this shakes out at AWS could influence the way retail works across the board and influences sectors like fashion. Amazon also pointed out that, although it’s eliminating some positions, it’s in a hiring mode for thousands of others at AWS, while it tries to shift workers internally when possible. U.S.-based workers being laid off will continue to receive pay and benefits for 60 days, support for external placements and transitional health benefits, with some eligible for severance.LeBron James' Wife Savannah Cheers in Balenciaga With Daughter Zhuri….

 

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