AWS Extends Hiring Freeze for 'Most' Teams Into 2023 and Targets Low Performers on Teams That Grew Too Fast

Amazon Web Services, the cloud computing subsidiary of Amazon, is asking managers to weed out underperforming workers on teams that have grown too fast, and will extend a hiring freeze across the organization into the first quarter of 2023 as the business seeks to keep costs in check amid slowing growth. Fortune: In a meeting this week, numerous AWS managers were informed that a hiring freeze that began earlier this month would continue into the first three months of the new year, but that layoffs were not currently planned at AWS, according to a person with knowledge of the matter. The lack of layoffs was greeted with relief by some AWS insiders, given the recent news that parent company Amazon was eliminating roughly 10,000 jobs across its retail and devices operations, as well as in human resources. Some AWS teams may still shrink however, as the business takes steps to reduce staffing levels in groups that are currently above their headcount targets for the year. Managers of such teams are expected to "fix" the situation by the end of Q1 next year by managing out low performers through performance improvement plans, attrition, and other means, the person told Fortune.

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