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Amazon implements cost-cutting measures at AWS by downsizing operations


Apr 4, 2024

In 2018, Amazon launched the cashier-less tech “Just Walk Out” at a store in Seattle. The system automatically tracks items shoppers take and charges them without the need for a cashier. There are human moderators who review transactions and label footage remotely to ensure accuracy and security.

The concept of Just Walk Out was a passion project of Amazon founder Jeff Bezos. Bezos wanted to set the company apart in the grocery market and eliminate the need for customers to wait in lines, which he believed was the worst part of traditional retail stores. In his 2018 shareholder letter, Bezos shared his vision of a store where customers could simply walk in, grab what they needed, and leave without any delays.

Layoffs are on the horizon for a portion of the AWS identity and checkout teams within the Physical Stores Technology organization, as mentioned in a message to employees by Dilip Kumar, vice president of AWS applications. This news comes after Amazon’s largest job cut round approximately 14 months earlier, which saw the elimination of 18,000 corporate roles due to cost-cutting measures after a surge of hiring during the pandemic.

Amazon has justified these layoffs as necessary to optimize resources and continue driving innovation for their customers. The company has also promised to support affected employees in finding new roles either within or outside Amazon during this transition period.

These recent events demonstrate the tough decisions that companies like Amazon must make as they navigate a rapidly changing business and technological environment.

By editor

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