Kudos to stdunbar for steering me in the right direction.
When installing sharp on MacOS via NPM the normal way (i.e.: npm i sharp --save), the installer automatically adds binaries for OS X. But AWS lambda functions run on Linux 2 machines with x64 processors and this is why we get this error.
To fix you must first uninstall sharp completely and then run:
npm install --cpu=x64 --os=linux sharp
Please refer to the official Sharp Installation Guide found here: https://sharp.pixelplumbing.com/install
Then deploy as usual from Serverless Framework with sls deploy
Side Note:
Sharp is EXTREMELY FAST!!! Before using sharp, I was using another image resizing utility named Jimp. It did the job, but was quite slow. To prevent timeout errors, I had to increase the memory size from 128 to 512 and the timeout from 5 seconds to 30 seconds just to handle a typical 1 megabyte image.
Here is a comparison between the two for resizing a 1.2Mb picture down to 600x400 using the same configuration:
Jimp -> used 512Mb of memory and AWS billed me for 14300 ms.
Sharp -> used 132 MB of memory and AWS billed me for 800 ms.
That's more than 14x faster than Jimp!!!