Amazon AI Layoffs Target HR Staff in Major Cost-Cutting Shift

Amazon is planning significant workforce reductions. The tech giant will cut 15% of its human resources staff. This information was reported by Fortune. The layoffs are part of a broader cost-cutting strategy.

The company aims to reduce employee expenses. These savings will be redirected toward major investments in artificial intelligence. This shift highlights a strategic pivot for the retail and cloud behemoth.

Details of the Amazon HR Layoffs

The planned cuts will heavily impact Amazon’s HR division. This division is known internally as PXT, or People eXperience Technology. According to Fortune, the unit employs over 10,000 people globally.

Its responsibilities include recruiting and technology roles. The exact timeline for these layoffs remains unclear. Further job cuts in other consumer business divisions are also expected.

This is not Amazon’s first major workforce reduction. CEO Andy Jassy oversaw the elimination of 27,000 corporate roles from late 2022 into 2023. That was the largest layoff in the company’s history.

Massive AI Investment Drives Corporate Shift

The layoffs coincide with enormous planned spending on AI. Amazon intends to invest over $100 billion in capital expenditures this year. The primary focus is expanding its cloud and AI data centers.

This financial commitment underscores the company’s new priorities. Internal resources are being reallocated from traditional roles to high-tech growth areas. The move reflects a wider trend across the Big Tech sector.

Many companies are adjusting after a period of rapid pandemic-era hiring. Demand for certain services has since normalized. This has led to a renewed focus on operational efficiency and future-proofing.

A Warning to Employees on AI Skills

Company leadership has been clear about the coming changes. In June, CEO Andy Jassy addressed the workforce. He encouraged employees to actively develop their AI skills.

He stated that those who contribute to internal AI projects will find more opportunities. He also delivered a stark warning. Jassy confirmed that workforce reductions are an expected outcome of increased AI adoption.

Despite these corporate layoffs, the company continues to hire in other areas. Amazon plans to bring on 250,000 seasonal workers for its US logistics and warehouse operations for the upcoming holiday season.

The planned Amazon AI layoffs signal a profound transformation within the company. This strategic shift from human resources to artificial intelligence investment is a definitive move to secure its future in a competitive tech landscape.

Dropping this nugget your way

Q1: How many HR employees are being laid off at Amazon?

Amazon is cutting 15% of its global HR staff. The PXT division employs over 10,000 people. The exact number of affected individuals has not been officially confirmed.

Q2: Why is Amazon laying off HR staff now?

The company is reallocating resources to fund its massive AI expansion. It plans to spend over $100 billion on AI and cloud data centers in 2025. This is part of a broader cost-cutting initiative.

Q3: Has Amazon done large layoffs before?

Yes, this follows a previous major round of job cuts. From late 2022 into 2023, Amazon eliminated 27,000 corporate roles. That was the largest layoff in the company’s history.

Q4: What did CEO Andy Jassy say about AI and jobs?

Jassy encouraged employees to develop AI skills for more opportunities. He also directly warned that workforce reductions are expected with the increased use of artificial intelligence across the company.

Q5: Is Amazon still hiring in other areas?

Yes, despite corporate layoffs, the company is hiring for its logistics network. Amazon plans to bring on 250,000 seasonal workers for its US warehouse and delivery operations.