Amazon set to execute significant layoffs affecting up to 15 percent of HR staff and additional positions at risk
Amazon is preparing for a significant wave of layoffs. Up to 15% of staff in the People Experience and Technology (PXT) division, which is part of the human resources department, could be affected. This action follows smaller layoffs earlier in the consumer devices group, Wondery podcast team, and Amazon Web Services (AWS).
Extent of Layoffs and Impacted Areas
The exact number of employees affected and the timing of these cuts remain uncertain. Although the PXT team will face the most severe impact, other segments of Amazon’s consumer business may also experience job losses. This move underscores a major restructuring in Amazon’s workforce management as the company shifts towards automation and efficiency.
Investment in AI and Cloud Operations
Amazon is investing billions into artificial intelligence and cloud services, with plans to spend over $100 billion this year. The investment focuses on developing advanced data centers to support AI infrastructure for both internal use and business clients. CEO Andy Jassy, who took over from Jeff Bezos in 2021, has defined this era by AI emphasis, asserting that not all employees will transition seamlessly.
In a company-wide June memo, Jassy highlighted the need for staff to adopt AI, stating that employees who support AI development will play a vital role in reinventing the company. Nevertheless, he warned that these advancements may lead to workforce reductions.
Historical Context and Strategy
Under Jassy’s leadership, Amazon has already undertaken the largest layoffs in its history, with approximately 27,000 corporate roles cut between 2022 and 2023. These were mainly due to post-pandemic overexpansion and evolving consumer habits. However, the current layoffs are more strategic, focusing on a shift toward AI-driven operations.
Concurrent Hiring Plans
Despite planning layoffs, Amazon is hiring 250,000 seasonal employees across its US warehouses and logistics network to manage holiday demand. Jassy is recognized for strict cost management, aiming for “unregretted attrition,” where employee departures are either voluntary or managed.
The upcoming layoffs represent a more considerable structural change, reflecting Amazon’s aggressive pursuit of efficiency and AI integration. For many within the PXT division, this marks a significant transformation in the company’s operational approach.
