What’s happening at Amazon: AWS lays off hundreds as Fresh grocery stores ditch Just Walk Out tech

Some big changes are happening in Amazon stores, while Amazon Web Services (AWS) has axed more employees.

Amazon is ditching its Just Walk Out program, which allowed customers in Amazon Fresh stores to do just that: exit with their items, without ever checking out.

The technology sounds ideal, but the systems, which were expensive to install, were also riddled with errors. Instead of a traditional checkout line, it relied on a host of cameras and workers watching them, as well as sensors that tracked what shoppers had in their carts. Late receipts and incorrect orders weren’t uncommon. It seemed that opting to avoid cashiers had led to a lot of other hands on deck in order to ensure customers were charged appropriately—and the system still wasn’t very accurate.

While Just Walk Out technology will still be offered in select stores in the U.K., it’s largely being phased out. But instead of reverting to the old-fashioned checkout line, Amazon is switching gears again.

Just Walk Out is out—but Dash Carts are in.

Dash Carts are essentially a unique way to pay as you go. The carts have scales and scanners attached to them, so that shoppers can keep a running tab as they shop, and yes, still skip the dreaded checkout line. Other retailers in the U.S., such as Kroger, have attempted similar solutions.

The carts are part of a redesign of Amazon Fresh stores. Jessica Martin, Amazon spokesperson, told PYMNTS that the redesigns have helped customer satisfaction. “We’ve also heard from customers that while they enjoyed the benefit of skipping the checkout line with Just Walk Out, they also wanted the ability to easily find nearby products and deals, view their receipt as they shop, and know how much money they saved while shopping throughout the store,” Martin said in a statement to the outlet. “To deliver even more convenience to our customers, we’re rolling out Amazon Dash Cart, our smart shopping carts, which allows customers all these benefits including skipping the checkout line.”

If it sounds like Amazon is doing everything but hiring actual people instead of robots, well . . . that certainly feels true, especially because the corporation just laid off hundreds of workers in a different department.

On Wednesday, AWS said it is eliminating hundreds of jobs. The layoffs will impact hundreds of AWS’ sales staff, as well as those in the marketing and global services division and the technology teams in physical stores.

“We’ve identified a few targeted areas of the organization we need to streamline,” an AWS spokesperson said, according to Reuters. “We didn’t make these decisions lightly, and we’re committed to supporting the employees throughout their transition to new roles in and outside of Amazon.”

The layoffs are a continued trend for the tech giant. The end of 2022 through 2023 saw the largest layoffs in its history as the company let 27,000 employees go, with cuts continuing this year.

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