E-Paper
AI takeover? Amazon plans 15% HR layoffs amid cost-cutting push
While the exact number of total layoffs and the timings have not been revealed, other areas of Amazon’s core consumer business may also face cuts.
Amazon is reportedly planning to lay-off 15% of its human resources staff, with further cuts expected across other divisions, according to multiple sources who spoke to Fortune.
The company’s HR division, known internally as PXT (People eXperience Technology), is going to be severely impacted.
While the exact number of total layoffs and the timings have not been revealed, other areas of Amazon’s core consumer business may also face cuts.
Earlier this year, Amazon laid-off its staff in its consumer devices unit, Wondery podcast division, and Amazon Web Services.
Amazon’s PXT division, which reports to senior VP Beth Galetti, has over 10,000 people globally. It deals with recruiting, technology, and traditional HR roles.
Heavy expenditure on AI datacenters
This comes as Amazon seeks reduce employee costs and invest heavily in AI products and infrastructure for both internal use and enterprise customers.
The company plans to spend over $100 billion in capital expenditures in 2025 to expand its cloud and AI datacenters.
CEO Andy Jassy previously oversaw Amazon’s largest-ever employee cuts from late 2022 into 2023, laying off atleast 27,000 corporate job, roughly a high single-digit percentage of office positions.
Many Big Tech companies similarly reduced headcount as pandemic-era demand reduced.
Develop AI skills or job loss: Amazon
Now, companies including Amazon are increasingly adopting AI to handle daily tasks and even more complex task.
In June, Jassy encouraged employees to make the most of AI, emphasizing that those who develop AI skills and contribute to internal AI projects will have more opportunities in the coming days.
He also warned that workforce reductions are expected with an increase in AI.
Despite the layoffs, Amazon plans to hire 250,000 seasonal workers for its US. warehouse and logistics operations this year.
The company’s stock has risen roughly 15% over the past 12 months, though it is down slightly in the current calendar year, with earnings scheduled for release later this month.
