AWS Not Impacted By Amazon’s 18,000 Layoffs: Sources


cloud news

Mark Haranas

Amazon Web Service employees won’t be significantly impacted by Amazon’s 18,000 layoffs this month, according to sources, but AWS still continues to suspend hiring.





Amazon’s popular cloud business, Amazon Web Services, has been largely unaffected by Amazon’s 18,000 layoff round announced last week, but AWS is still on a hiring pause, according to multiple sources. increase.

“This is affecting Amazon, not AWS,” said one AWS partner executive familiar with the matter. “For AWS, the number of layoffs is utterly irrelevant.”

AWS, Amazon’s $80 billion cloud computing business, has consistently outperformed its parent company over the past few years as demand for cloud services explodes.

When contacted, AWS declined to comment on whether AWS employees would be affected by the 18,000 layoffs at Amazon. Instead, the Seattle-based company pointed to a post to employees from Amazon CEO Andy Jassy, ​​former CEO of AWS, on his CRN.

“Several teams are impacted. However, the majority of role removals occur in the Amazon store and PXT. [People, Experience and Technology] organization,” said Jassy.

[Related: Salesforce Layoffs: Poor Earnings, CEO Departure, Hiring strategy Led To Massive Cuts]

PXT is Amazon’s human resources division.

Amazon began communicating with affected employees on January 18th, and is expected to reduce its workforce in the coming weeks.

AWS on Hiring Suspension

AWS has not seen any significant employee layoffs, but sources say AWS is currently suspending most hiring.

“We’ve seen a hiring pause for most positions at AWS,” said one of AWS’s top partner CEOs, speaking on condition of anonymity. “And this has impacted his hiring team at AWS. Clearly, if hiring is suspended, fewer resources will be needed to hire talent.”

AWS remains on a hiring freeze after late 2022.

The CEO said he was told AWS was “very bullish on leveraging partners as part of this ‘hiring pause’.” They know companies like ours aren’t suspending hiring. ”

Amazon has over 1.5 million employees, but I don’t know how many thousands formally work for AWS.

As of Monday morning, the Amazon Web Services website has approximately 200 job openings worldwide.

Most of the vacancies are for AWS Systems Development Engineers, involved in software development with positions spread all over the world.

AWS is Amazon’s top priority

In AWS’s latest quarterly earnings call, Amazon CFO Brian Olsavsky said AWS is Amazon’s top priority and the company continues to invest heavily in it.

Olsavsky said in November, “We continue to expand our investment in AWS, increasing our headcount in product builders, sales and professional services to help our customers save money, invest in their businesses faster, and move to the cloud. will do so.

AWS consistently grows sales at a faster rate compared to parent company Amazon.

For example, AWS revenue in Q3 2022 will grow 28% year-over-year to $20.5 billion, showing much higher revenue growth compared to Amazon’s 15% year-over-year growth. .

Amazon CEO Jassy served as CEO of AWS from 2003 to 2021, after which he was chosen to succeed Jeff Bezos.

On January 4, he said more than 18,000 roles will be removed at Amazon between the cuts AWS made in November 2022 and the cuts set for early 2023.

“The S-Team and I are deeply aware of the difficulty people face in retiring these roles, and we do not downplay these decisions or underestimate how much they will impact the lives of those affected. plug.

“Amazon has weathered uncertain and difficult economies in the past and will continue to do so,” he said. “These changes will help us pursue long-term opportunities with a stronger cost structure. optimistic that they will be creative, witty and cunning.”

Amazon plans to report its fourth quarter 2022 results in late January or early February.


    Learn about Mark Haranas

Mark Haranas

Mark Haranas is an Assistant News Editor and now a longtime journalist covering CRN’s cloud, multicloud, software, SaaS and channel partners. He speaks to world-renowned CEOs and IT professionals, covers breaking news and live his events, and manages several of his CRN reporters. His contact is his mharanas@thechannelcompany.com.



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