Amazon is preparing to reduce its workforce by cutting up to 15 per cent of roles in its human resources department, according to a Fortune report citing
sources familiar with the matter. The layoffs will primarily impact the HR team, known within Amazon as the People eXperience Technology (PTX) group, which employs over 10,000 people worldwide. However, other essential consumer business units might also experience job reductions, insiders revealed in the report. An Amazon spokesperson, Kelly Nantel, declined to comment on the report. AI Push Driving Cost-Cutting Measures These layoffs come as Amazon ramps up its investment in artificial intelligence (AI) technology and infrastructure. The company has announced plans to allocate more than $100 billion in capital expenditures for 2025 to develop AI-focused data centres and cloud computing facilities, serving both internal operations and external clients. The move to streamline employee costs aligns with Amazon’s broader strategy to enhance efficiency through AI adoption. Since late 2022, CEO Andy Jassy has approved roughly 27,000 job cuts, mainly affecting corporate offices. This downsizing mirrors trends seen across major tech players like Meta and Google, which have also reduced their workforce during this period. Embracing AI For The Future At Amazon In a memo sent out in June, Andy Jassy highlighted the critical role AI will play in the company’s evolution. He 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.” Jassy also noted, “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.” Despite the layoffs, Amazon plans to hire approximately 250,000 workers for the upcoming holiday season, filling full-time, part-time, and seasonal positions. These temporary workers will earn an average of $19 per hour, while permanent roles offer around $23 per hour, consistent with hiring levels from previous years.
