AWS Layoffs 2025: What Amazon Cloud Employees in Canada Should Know About Severance

On July 17, 2025, Amazon Web Services (AWS) — the cloud-computing division of Amazon — confirmed that it had cut hundreds of jobs across multiple teams as part of an ongoing restructuring effort (Reuters).

The news follows Amazon CEO Andy Jassy’s earlier warning that the adoption of generative AI tools would lead to a reduction in headcount across the company’s global workforce.

While Amazon did not release a country-by-country breakdown, the cuts are affecting Canadian employees working within AWS corporate and cloud-support divisions, including those in Toronto, Vancouver, and Calgary. Many of those impacted by the cuts are reaching out to employment law firm Samfiru Tumarkin LLP for legal advice and representation.

Why AWS Is Cutting Jobs

Amazon said the decision was part of a plan to “eliminate some roles across particular teams in AWS” while continuing to “invest, hire, and optimize resources to deliver innovation for customers.”

The layoffs reflect several key trends shaping the tech industry in 2025:

• AI adoption: Companies are using artificial intelligence to write code, manage infrastructure, and automate repetitive tasks.
• Corporate efficiency: Amazon is trimming management layers to stay agile while scaling its cloud operations.
• Market competition: AWS remains Amazon’s largest profit centre, but rivals like Microsoft Azure and Google Cloud have posted faster growth rates.

According to Reuters, AWS reported $29.3 billion in first-quarter sales (up 17% year-over-year) and $11.5 billion in operating income — yet the company says the cuts are necessary to “reduce bureaucracy” and remain competitive.

Which AWS Teams Were Impacted

Several divisions within AWS were affected, including:

• Specialist teams — groups that help customers develop new cloud products and optimize services.
• Sales and customer-success roles — positions focused on client acquisition and account management.
• Support and operations — technical and administrative teams across AWS infrastructure and development.

Some employees reported receiving termination emails and immediate computer deactivation notices on the morning of July 17.

Severance Rights for AWS Employees in Canada

If you’re a non-unionized AWS employee in Canada and your job was eliminated, you have important rights under Canadian employment law.

Depending on your age, position, and length of service, you may be owed up to 24 months of severance pay — often far more than what Amazon initially offers.

Many multinational corporations only provide the minimum termination pay required by provincial employment-standards legislation (for example, Ontario’s Employment Standards Act).

However, most employees are entitled to common-law severance, which considers additional factors such as:

• Your ability to find similar work in the current job market
• Seniority and professional specialization
• Whether you were pressured to sign a severance offer quickly

What to Do If You’ve Been Laid Off from AWS

1. Don’t sign anything immediately. Termination deadlines are not legally binding.
2. Save all correspondence. Keep copies of layoff emails, severance offers, and HR communications.
3. Get legal advice. A consultation with an employment lawyer can confirm whether your package is fair.
4. Start your job search. Showing proactive efforts to find new work helps demonstrate mitigation if a claim is needed.

If you’re unsure whether your layoff was handled correctly, or if you believe your severance package is incomplete, our team can help.

AI and the Future of AWS Jobs

Amazon has been investing billions of dollars into AI-driven data centres and automation tools, which are reshaping not just AWS but the global tech workforce.

While these investments fuel innovation, they also replace many mid-level and technical roles that once supported cloud infrastructure manually.

This shift underscores a larger truth:
Even when layoffs are tied to automation, employee rights do not disappear. If your position was cut as part of an AI-driven restructuring, you are still entitled to full compensation and notice under Canadian law.

Key Takeaway

The July 2025 AWS Layoffs show that even the world’s most profitable cloud division isn’t immune to corporate restructuring.

But for affected employees in Canada, this doesn’t mean walking away empty-handed.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.