New Delhi, April 4: Amazon lays off hundreds of its employees from its AWS, the cloud computing unit, sales and marketing units. marking a significant development in the tech industry. The news also comes as part of a broader trend of layoffs in 2024 which is reflecting the challenges some companies are facing. The Amazon layoffs signify a shift in the company's operations, aligning with the patterns of other 2024 layoffs across the technology sector.

As per a report of CNBC, Amazon layoffs hundreds of jobs in its cloud computing unit. Amazon might be replacing its cashierless system 'Just Walk Out' with "Dash Carts" in its US Fresh stores, as per a report of Times of India. It is important to understand the context in which these Amazon layoffs are occurring. BYJU’s Layoffs 2024: Edtech Firm Begins Laying Off Employees via Phone Calls Without Giving Any Notice Period Amid Financial Crisis.

The e-commerce giant has been facing a variety of pressures like economic shifts to changes in consumer demand that could contribute to making decisions like these. As per reports, an AWS spokesperson said, it is part of a strategic shift for certain applications in both Amazon-owned and third-party stores, which is leading to the decision to reduce the workforce in the store technology division.

In 2022, Amazon Web Services (AWS) took over the store technology team responsible for cashierless technology, Dash smart carts and Amazon One palm-based payment technology, shifting it from Amazon's retail group to its cloud computing division. Amazon's "Just Walk Out" technology was introduced in 2016. Amazon's "Just Walk Out" technology in its retail business enabled customers to scan a QR code while entering to Fresh stores and can shop for necessary items and walk out without the need for checkout lines. The system used sensors, cameras, and remote employees to detect and process purchases as well as to complete transactions. Layoffs 2024: US States Missouri and Michigan Hit by Mass Layoffs in Automobile, Manufacturing and Other Sectors, More Employees To Be Affected.

"Just Walk Out" technology has faced financial challenges for Amazon. In 2022, the technology fell short of Amazon's internal target, with 700 out of every 1,000 sales requiring human review, compared to the target of fewer than 50 per 1,000 sales. The system's high costs and delays in transactions have also resulted in some customers waiting for hours to receive their receipts.

(The above story first appeared on LatestLY on Apr 04, 2024 10:53 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).