Amazon is set to do another round of layoffs in its workforce, with up to 15 percent of its human resources division, known as the People eXperience and Technology (PXT) team, facing cuts, according to a report by Fortune. The layoffs are part of a broader AI-driven restructuring effort, with other departments in Amazon’s consumer business also likely to be affected. The exact number of job losses and the timeline for these cuts remain undisclosed.
Amazon HR team to be impacted the most
The PXT division, which employs over 10,000 people globally and includes recruiting, technology, and traditional HR roles, is expected to bear the brunt of the layoffs. This move follows smaller reductions earlier this year in Amazon’s consumer devices unit, Wondery podcast division, and Amazon Web Services (AWS).
Under CEO Andy Jassy, who took over from Jeff Bezos in 2021, Amazon is intensifying its focus on artificial intelligence and cloud infrastructure, with over $100 billion allocated for capital investments this year, largely to support AI-driven data centers. Jassy has emphasised AI as a cornerstone of Amazon’s future, stating in a June company-wide memo that employees who adapt to AI advancements will be well-positioned to drive impact. However, he also warned that increased AI adoption would likely reduce the corporate workforce as efficiency improves.
These layoffs follow Amazon’s largest-ever workforce reduction between 2022 and 2023, when approximately 27,000 corporate roles were eliminated due to post-pandemic overexpansion and shifting consumer trends. Unlike those cuts, the current round is described as a strategic shift toward automation, with sources indicating it differs from Amazon’s typical “unregretted attrition” process, where managers target a percentage of employees for voluntary or managed exits.
In a contrasting move, Amazon announced plans to hire 250,000 seasonal workers for its US warehouses and logistics network to meet holiday demand, highlighting a divergence between its corporate and operational staffing strategies. The company’s stock has risen 15 percent over the past 12 months, though it is down slightly year-to-date. Amazon is expected to report its earnings later this month.
