Amazon's cloud division employees, including former CEO of AWS Andy Jassy, were not exempt when the company announced today that it was laying off an additional 9,000 employees. According to TechCrunch, AWS contributed about 10% of today's total. The company refused to confirm these figures, citing the memo that Jassy sent to its staff, released this morning, as the main point of its statement.
The document states that during the first wave of layoffs, some executives continued to review their departments, which is why the company is phasing out layoffs.
The simple answer is that not all teams were able to complete their analysis by the end of autumn. Rather than rushing these reviews without due diligence, we have chosen to publish these decisions as we make them so that individuals can receive information as soon as possible. Jassy composed.
According to Ray Wang, founder and principal analyst at Constellation Research, Amazon had to dig deep into every aspect of the business, and AWS was no different. “Amazon has gotten fat in the past, and it's part of a larger trend of internet companies cropping up again. A few weeks ago they finally finished their analysis and now there are outages in AWS too.”
The cloud division's growth rate fell from over 39% the previous year to 20% in the company's latest earnings report at the beginning of the month. The situation worsened when CFO Brian Olsavsky noted that growth was slowing further. We anticipate that these optimization efforts will continue to stifle AWS growth, at least in the coming quarters. Olsavsky noted that AWS' year-over-year revenue growth is already in the mid-decades in the first month of the year.
In light of this, layoffs should not be unexpected. In fact, growth in the cloud infrastructure industry as a whole has been stagnant. After years of explosive growth, cloud spending is curtailed, which is starting to impact the market. The overall growth rate of the cloud infrastructure market fell from 36% the previous year to 21% at the end of the most recent earnings report cycle.
In addition, Microsoft, Amazon's long-time competitor, has increased its market share. While Microsoft's growth also slowed in the previous quarter, it is expanding faster and is gradually starting to gain ground against AWS.
In light of this, layoffs should not be unexpected. In fact, growth in the cloud infrastructure industry as a whole has been stagnant. After years of explosive growth, cloud spending is curtailed, which is starting to impact the market. The overall growth rate of the cloud infrastructure market fell from 36% the previous year to 21% at the end of the most recent earnings report cycle.
In addition, Microsoft, Amazon's long-time competitor, has increased its market share. While Microsoft's growth also slowed in the previous quarter, it is expanding faster and is gradually starting to gain ground against AWS.
Source: techcrunch
Günceleme: 20/03/2023 23:29