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Internal Email Exposes Cloud Unit Shake-Up

Amazon has inadvertently revealed a new wave of job cuts after an internal email sent to employees acknowledged “organizational changes” within Amazon Web Services, the company’s highly profitable cloud computing division.

The message, circulated to AWS staff earlier this week and later viewed by reporters, appeared to confirm that some employees had already been notified of their roles being impacted. The email, written by Colleen Aubrey, Senior Vice President of Applied AI Solutions at AWS, described the changes as difficult but necessary as Amazon positions its cloud business for long-term growth.

“Changes like this are hard on everyone,” Aubrey wrote, adding that the decisions were made carefully to prepare AWS for future success. The note referenced communication from Amazon’s Chief Human Resources Officer Beth Galetti and stated that “impacted colleagues in our organization” had already been informed.

The subject line of the email included the phrase “Project Dawn,” and internal indicators suggested the message may have been recalled shortly after being sent, implying it was distributed prematurely. Amazon has not publicly clarified what Project Dawn refers to.

The company did not immediately respond to requests for comment.

Broader Corporate Layoffs Expected as Soon as This Week

The accidental disclosure comes as Amazon prepares to announce widespread layoffs across its corporate workforce, potentially as early as this week, according to people familiar with the matter. Both Amazon Web Services and the company’s core retail operations are expected to be affected.

This follows Amazon’s October announcement that it would cut approximately 14,000 corporate roles, part of a multi-phase restructuring effort aimed at streamlining management and reducing internal bureaucracy. At the time, Amazon signaled that additional reductions would continue into 2026 as leadership identified “more areas where we can remove layers.”

Amazon CEO Andy Jassy has been candid about the company’s direction, stating that advances in artificial intelligence and automation are expected to significantly reduce the need for certain corporate functions over time. In remarks last year, Jassy said productivity gains from AI would inevitably shrink Amazon’s white-collar workforce in the years ahead.

Amazon currently employs more than 1.5 million people globally, though only a fraction work in corporate and technical roles. Still, these cuts represent one of the largest ongoing restructurings in Big Tech, following similar workforce reductions at companies such as Google, Meta, and Microsoft.

AWS Under Pressure Despite Strong Revenue Growth

Amazon Web Services remains the company’s primary profit engine, generating tens of billions of dollars in annual revenue and accounting for a substantial share of Amazon’s operating income. However, AWS has faced slowing growth compared with the post-pandemic surge, as enterprise customers tighten IT budgets and optimize cloud spending.

At the same time, competition in cloud and AI infrastructure has intensified, with Microsoft Azure and Google Cloud aggressively expanding their enterprise offerings while investing heavily in generative AI capabilities.

Insiders say Amazon is restructuring AWS to align resources more closely with high-growth areas such as applied AI, custom chips, and enterprise automation, while trimming overlapping teams and management layers.

Grocery Business Also Restructured as Amazon Refocuses Strategy

The workforce changes extend beyond AWS. Earlier the same day as the leaked email, Amazon announced a significant reorganization of its grocery operations.

The company said it will shut down its Amazon Fresh supermarkets and Go convenience stores, shifting investment toward Whole Foods Market and online grocery delivery. The move reflects Amazon’s ongoing struggle to find a profitable formula in physical retail food while facing intense competition from Walmart, Kroger, and regional chains.

Jason Buechel, Amazon’s top grocery executive, told employees in a memo that the company must make more “deliberate choices” to better serve customers. He also revealed plans to create a new “grocery quality” leadership role and outlined additional structural changes within the division.

These moves are part of a broader effort to simplify operations and concentrate capital on businesses with clearer paths to profitability.

Investors Watch Closely Ahead of Earnings

Amazon is scheduled to report fourth-quarter earnings on Feb. 5, a release that is expected to draw close scrutiny from investors looking for clarity on cost controls, cloud growth, and AI-driven efficiencies.

Wall Street analysts anticipate management will provide updated guidance on workforce reductions, capital spending, and AWS performance. With Amazon shares closely tied to cloud momentum and operational discipline, the latest restructuring signals could play a significant role in shaping market sentiment.

A Clear Shift Toward Leaner Operations

Taken together, the leaked AWS email, pending layoffs, and grocery restructuring point to a company accelerating its push toward leaner operations. Amazon is increasingly betting on automation, artificial intelligence, and tighter organizational design to drive its next phase of growth.

While painful for affected employees, leadership views the changes as essential to keeping Amazon competitive in an era defined by rapid technological shifts and margin pressure.

As Amazon doubles down on efficiency and AI, the latest developments suggest that further organizational changes may still lie ahead.

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