Amazon gears up for another wave of layoffs according to insider sources
Amazon plans significant layoffs, focusing on its People eXperience Technology (PXT) team, comprising a substantial part of its human resources staff. The job cuts may extend to other areas of Amazon’s core consumer business. This move follows earlier layoffs in 2023 affecting Amazon’s consumer devices unit, Wondery podcast division, and Amazon Web Services.
Impact on Human Resources
The PXT division will experience major changes, with a 15% reduction in staff. Under the leadership of Senior Vice President Beth Galetti, this division employs over 10,000 people worldwide, including HR, technology, and recruitment staff.
Strategic Shifts and AI Integration
Amazon is shifting towards cost reduction by investing in artificial intelligence technologies and infrastructure, with plans to spend over $100 billion in capital expenditures this year. CEO Andy Jassy, known for his cost-cutting strategies, is steering Amazon to embrace AI to optimize efficiency.
Jassy emphasized the importance of adopting AI technologies within Amazon in a companywide email. He indicated that those willing to adapt to AI would play essential roles in the company’s future endeavors.
Corporate and Seasonal Workforce Adjustments
While Amazon anticipates these corporate layoffs, it also announced a seasonal hiring of 250,000 employees across its U.S. warehouses and logistics networks for the upcoming holiday season.
Amazon’s Market Position
- Amazon’s stock exhibits a slight decline this year but remains 15% higher than the previous year.
- The company will release its quarterly earnings report later this month.
CEO Andy Jassy, since succeeding Jeff Bezos in 2021, has implemented measures to streamline operations. These planned layoffs represent a shift in typical workforce reductions and illustrate Amazon’s evolving focus on technological advancement.
