AWS employees are worried today’s layoffs will reduce their bargaining power when it comes to salary and benefits. Many analysts believe Amazon’s cloud division, AWS, is the company’s future. While Amazon has not released statements confirming this belief, the layoffs suggest that AWS may be at risk of being reduced in importance in the company’s plans.
AWS has emerged as a major player in the cloud computing market, with 10% of all server traffic attributed to it. This dominance is likely due to AWS’s incredibly low-cost and scalable platform, which makes it an attractive choice for startups and businesses looking for an easy way to enter the cloud computing market.
Many employees were not happy with the decision to layoff in stages, believing that it was done without due diligence. Citing the company’s goals of efficiency and decision making, Jassy insisted that the layoffs were necessary in order to maintain morale. However, many of those who lost their jobs believe that more structure and communication would have prevented them from being cut so soon.
Since Amazon completed its analysis of AWS, the company has made cuts to its personnel and operations. These cuts follow a trend of leaner organizations in the tech industry, and they are part of a larger effort to improve Amazon’s efficiencies.
It seems as if cloud growth rates are beginning to stagnate, likely due to the company’s optimization efforts. These initiatives will continue to hinder AWS’ growth in the near future, potentially causing a dip in revenue.
In the past, companies have relied heavily on cloud infrastructure in order to save money and make their businesses more efficient. However, as the market has been slow to grow recently, many companies are beginning to cut back on their spending. This will inevitably result in layoffs in the near future.
Microsoft may have slowed down in the past quarter, but they are still seeing growth. They are starting to gain slowly but steadily on AWS. This could be worrisome for Amazon as Microsoft has always been a fierce competitor.