Amazon AWS Debunks 10% Layoff Rumors in China

Frederick Nyame

March 29, 2025

On March 28 2025, several media reported that AWS Greater China had laid off a lot of employees. The reports claimed the company made these layoffs through a strategy of “three-year non-renewal and PIO” (Performance Improvement Plan). According to details of the reports, the layoff affected nearly 10% of staff from multiple departments.

To get further details about this story, Sina Technology reached out to Amazon Cloud Technology China. It turned out that the largely reported claims were not entirely true. The company strongly denied such claims. Quoting from the official response from AWS China, the company said:

“The reports are seriously untrue. Amazon Cloud Technology continues to actively recruit talent in China and provide world-class, secure, and reliable cloud technology to Chinese enterprises.”

Renewal Policy and Performance Standards

AWS China says there are no mass layoffs. However, reports say employees must get a Top Tier (TT) rating to renew their contracts after three years. This rule makes job security uncertain. It also increases pressure on workers. Many think it could lead to more competition and job cuts in the future.

TT rating is Amazon’s highest performance level, awarded only to the top 10% of employees. This makes contract renewal highly competitive. In most cases, 90% of employees are not able to meet the criteria for automatic renewal. Employees who fail to secure the TT rating may face non-renewal of contracts. The company may also place some of them on a Performance Improvement Plan (PIP). Most workers on this plan often end up voluntarily resigning or terminating their contracts.

Tightened Hiring and Recruitment Restrictions

Other reports have also indicated that AWS Greater China significantly slowed down hiring in 2024. The reports claimed that only a few Business Development positions in the company are recruiting. Unlike the past years, AWS China does not seem to be replacing employees who leave the company. This indicates that the company is strategically shrinking its workforce. In the past, AWS made sure it replaced any staff that left the company or was laid off. However, that wasn’t the case in 2024.

Implications for AWS in China

AWS China may have denied mass layoffs. However, the reported policies indicate increased job insecurity for employees. The high renewal bar and hiring freeze also suggest otherwise. AWS may be restructuring its China operations. This could potentially be due to business strategy shifts or external market conditions.

AWS is growing worldwide and needs to keep skilled workers in China. The company competes with local cloud providers, so it offers good pay, career growth, and training. It also follows local rules and understands the culture. By supporting employees and encouraging new ideas, AWS can stay strong in China.

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