Reducing staff is the intent, but so far I'm not sure it's being realized. At least for the handful of companies where I have some view into how they're using AWS, they have an awful lot of people who look like IT staff, but have been rebranded from "sysadmin" to "devops". Some are even doing pretty similar things as before, like building and maintaining OS and application images, keeping up on security issues, writing big piles of scripts to automate deployment, etc. The forms are new (Ansible scripts, VHD and Docker images, etc.), but a lot of the work looks familiar.