Employment Law

Amazon Layoffs: Hundreds of jobs in cloud computing unit being axed

A photo of a server system. (Photo: Taylor Vick / Unsplash)

What’s happening at Amazon?

Amazon’s cloud computing arm, Amazon Web Services (AWS), is eliminating hundreds of jobs across a variety of teams.

“We’ve identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact,” an AWS spokesperson said in a statement to CNBC.

“We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition to new roles in and outside of Amazon.”

Affected teams include sales, marketing, physical stores technology, as well as global services.

• Amazon’s Twitch cutting 500 jobs to ‘rightsize’ the business
• Amazon cuts 180 jobs in gaming division, part of broader restructuring
• Amazon trimming Music division after several rounds of layoffs

Impact on Canadian staff

It remains unclear if Canadian employees are affected by the latest round of job cuts at AWS.

According to the company’s LinkedIn page, it has more than 4,400 workers in the country.

Termination agreements for employees at Amazon Web Services

In Canada, non-unionized employees at AWS are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

Severance pay for provincially regulated employees
Rights to severance for tech sector staff
Severance packages during mass layoffs

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Major tech layoffs continue

The job cuts at AWS come amid a flurry of tech sector layoffs in 2024.

Big names, including Intel, Lightspeed, Dell, IBM, Cisco, Mozilla, Instacart, BlackBerry, Grammarly, DocuSign, Snap, Zoom, Okta, PayPal, and Salesforce, have also pulled out the axe as they continue to navigate challenging economic conditions.

Wayfair cutting 1,650 jobs, Ontarians affected
Boundless Learning laying off 15% across company: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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