As an engineer employed by third party companies using AWS, this doesn't look good. I don't care if the support people are in an office. I do care if they're available and know what they're doing. There are other cloud providers available. For new entrants, what's Amazon's unique selling point?
AWS is flailing now and pissing off all the competent workers. Those who have the skill will leave for newer gen cloud companies without the baggage like Fly or Tailscale or even Oxide. Or they'll start their own thing.
So do you really want your whole company's compute environment running on infrastructure managed by burnt out and low skilled people?
This might be the start of the migrations from the first generation infrastructure focused cloud services to the new more application focused services.
The same thing it's always been: cargo cult membership for tech bros who think Amazon invented renting virtual servers.