[News] Amazon Reportedly Cutting Jobs at AWS Greater China, Up to 30% of Staff Affected

According to ITHome, citing Leiphone, sources say that Amazon Web Services (AWS) Greater China is preparing for a round of layoffs expected to take place between late September and October. The scale could range from 20% to 30%, with secondary teams said to be the hardest hit. AWS Greater China currently employs fewer than 1,700 people, which means that roughly 300 to 500 staff could be affected based on those percentages.

Leiphone states that low employee productivity at AWS China may be one of the reasons for the layoffs. The report points out that AWS China’s productivity is significantly lower than that of the Japan division — both regions generated about $4 billion in revenue in 2024, but the Japan division had just over 1,000 employees, giving it a productivity ratio roughly twice that of Greater China.

In addition, as Leiphone notes, AWS’s overall performance in the second quarter was weak. AWS revenue grew 17.5%, well below Microsoft Azure’s 39% and Google Cloud’s 32%. Its profit margin also declined, dropping from 39.5% in the first quarter to 32.9% — the lowest level since the fourth quarter of 2023. Furthermore, as the report highlights, AWS, Amazon’s cloud computing division, contributed about 53% of Amazon’s total operating profit, down sharply from 64% in the same period last year.

An AWS spokesperson responded by saying that the claims by Leiphone.com are not accurate. AWS Greater China remains focused on delivering world-leading, secure, and reliable cloud technology to our customers in China, the spokesperson added.

Amazon’s layoffs have also extended beyond Greater China. CNBC reported that Amazon confirmed job cuts within its cloud computing division. According to a memo from division head Michelle Vaz reviewed by CNBC, the reductions included roles in AWS’s training and certification unit.

As CNBC further highlights, Amazon stated that the layoffs were not primarily driven by its investments in AI, but rather stem from ongoing efforts to streamline its workforce and realign around key priorities. The company added that it is still hiring in certain areas within AWS, the report notes.

Wider Tech Industry Layoffs

Amazon is not the only tech giant reducing headcount. According to The Economic Times, sources said earlier this month that Oracle began laying off staff in India, cutting more than 100 positions as it sharpens its focus on AI and cost efficiency. This came on the heels of broader global layoffs at the company that saw hundreds of employees across offices let go, as noted by another report from The Economic Times. Meanwhile, as CNBC reported, Microsoft cut 9,000 jobs in July, after carrying out smaller rounds of reductions in the preceding months.

Read more

• [News] Amazon Reportedly Shuts Down Shanghai AI Lab as Tech Giants Scale Back in China
• [News] Amazon Reportedly Plans Late-2026 Debut of First AR Glasses, Taking On Meta

(Photo credit: Amazon)