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Amazon Web Services (AWS) has announced significant restructuring measures affecting its global sales, marketing, and physical stores technology teams. The tech giant plans to cut several hundred roles across these three divisions to streamline its operations and concentrate efforts on key strategic areas.

Redundancies in several job families, such as program management and sales operations, have contributed to the decision for layoffs. “These decisions are difficult but necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers,” Amazon spokesperson Duncan Neasham said in a statement.

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Embracing digital training and technological shifts

As part of its restructuring efforts, AWS is shifting its training approach towards digital platforms and external partnerships, prioritizing self-serve digital training and collaborating with AWS Training Partners for instructor-led training. This shift in focus will primarily impact roles within the training certification and sales operations teams.

Read more about the shift in focus companies are taking today to ensure top technology skills and competencies in the workplace, according to Upwork.

The company also disclosed layoffs within its physical stores technology team, citing a strategic shift in technology usage within both Amazon’s and third-party stores. Also commenting on the layouts, Matt Garman, AWS senior vice president, offered, “We operate in an incredibly fast-moving industry, and it is important that we stay agile as an organization.”

Recognizing the impact on the company’s employees, he added, “The changes we are making are preparing the organization for the future, aligning with our strategy and priorities, and reducing duplication and inefficiency. I recognize the effect this has on every individual impacted.”

Navigating through market dynamics with a proactive approach

Despite the restructuring and layoffs, AWS remains a dominant force in the cloud computing landscape. As the world’s leading cloud provider with a 32% global market share, the company continues to drive innovation and growth. While maintaining its market leadership, AWS is navigating through challenges posed by competitors such as Microsoft Azure and Google Cloud, both experiencing accelerated growth.

Commitment to driving future growth

The job cuts are expected to take place in regions around the world. U.S. employees will receive pay and benefits for at least 60 days, outplacement job search support, access to transitional health benefits, and severance payments.

AWS’s restructuring initiatives reflect a proactive approach to adapting to changing market demands, optimizing operational efficiency, and fostering a resilient workforce capable of driving future growth and success.