Amazon is preparing for a significant wave of layoffs, specifically affecting its human resources division as part of a comprehensive restructuring focused on artificial intelligence. A report from Fortune indicates that the company may cut up to 15% of its HR workforce, especially within the People eXperience and Technology (PXT) unit, which manages Amazon’s global staff. While the precise number of employees impacted is still unclear, sources indicate that additional departments may also experience reductions. This comes after smaller layoffs earlier this year in Amazon’s consumer devices, Wondery podcast, and Amazon Web Services (AWS) sectors. The upcoming layoffs seem to be part of a larger reorganization aimed at enhancing operational efficiency and AI integration.
Amazon is investing heavily in expanding its artificial intelligence and cloud capabilities, signaling a significant shift towards automation. The company has allocated over $100 billion in capital expenditures this year, primarily to develop advanced data centers that will support cutting-edge AI systems for internal and enterprise use. Under CEO Andy Jassy’s leadership, the focus has been on building a future centered around AI.
In a memo to all employees in June, Jassy stated: “Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company.” He also acknowledged that this transition would likely lead to a reduction in the overall corporate workforce due to efficiency gains from extensive AI utilization. This illustrates Amazon’s shift from a labor-intensive model to one increasingly reliant on automation and machine learning. Interestingly, while Amazon plans to downsize its corporate workforce, it is also gearing up for its peak retail season. The company recently announced it will hire 250,000 seasonal employees at U.S.
fulfillment centers and logistics hubs to handle the expected increase in demand during the holidays. Analysts point out that this juxtaposition of laying off white-collar workers while increasing blue-collar hiring reflects Amazon’s evolving priorities. Jassy, known for his strict cost management, has stressed the importance of “unregretted attrition,” fostering an environment of efficiency and voluntary departures. However, insiders indicate that the imminent layoffs represent a more profound structural change rather than typical performance-related reductions. This suggests a fundamental shift in Amazon’s operational approach in an age dominated by AI and data-driven strategies.
As Amazon aggressively moves towards automation, many in the PXT division view this transition as both a chance for growth and a cautionary tale, reminding them that even those who manage personnel might soon find themselves overseen by algorithms. For thousands of Amazon workers, the company’s relentless pursuit of efficiency may soon threaten their positions, as they become casualties of the very technology transforming the workplace.