Amazon Web Services (AWS) is becoming increasingly concerned about competition from Microsoft and Google, despite being the number one cloud provider globally, to the degree that the business is now looking to reorganize its 60,000-strong sales team.
The report comes from The Information, which cites AWS Head of Sales Matt Garman’s plans for an overhaul as well as people familiar with the matter and an internal document.
According to the report, Garman plans to consolidate teams that have developed conflicting sales strategies in a bid to streamline the business’s approach.
AWS plans to change sales staff structure
Garman’s intention is to reassess how AWS assigns its staff to help customers amid what appears to be growing complaints from clients about the service they receive.
Although Amazon’s cloud business continues to grow, recent months have revealed that it can’t sustain the same measures of growth seen by its key rivals. The company’s cloud revenue growth last quarter wasn’t far off half that of Google’s, while Microsoft’s growth was more than double Amazon’s.
The company’s margins have also been narrowing recently with more spend being allocated to things like artificial intelligence, which have taken off over the past 12 months.
More broadly, Amazon as a whole laid off more than 27,000 workers in the 2022-2023 period of redundancies. It has since announced thousands of vacancies, including temporary and seasonal roles to help sustain its ecommerce business.
It’s unclear whether the restructuring of AWS sales staff will result in the loss of any jobs. TechRadar Pro has asked Amazon to confirm, but we did not receive an immediate response. Any update will be posted here.
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