Amazon’s AWS Layoffs: 5 Things To Know About ‘Devastating’ Cuts
From the number of potential AWS employees being laid off to AWS being the major profit driver for Amazon, CRN breaks down five things to know from Amazon’s 9,000 layoff announcement today.
AWS Is The Profit Driver For Amazon
AWS is the most profitable businesses across Amazon.
In its most recent fourth quarter 2022, Amazon’s operating income was $2.7 billion, while AWS’ operating income was $5.2 billion for the fourth quarter. In short, AWS is the main reason why Amazon wasn’t operating in the red during its most recent quarter.
For the entire 2022, Amazon sales increased only 9 percent compared to 2021, while AWS sales jumped nearly 30 percent annually to over $80 billion.
“From my point of view, laying off AWS employees doesn’t make sense for Amazon,” said one top executive from a regional solution provider who partners with AWS, who declined to be named. “It’s their most profitably businesses from my standpoint. And it’s how they lead from an innovation standpoint.”
“[AWS layoffs] doesn’t make too much sense to me from an operating standpoint. And it totally doesn’t make sense to me from an innovation standpoint,” he said.