Amazon Plans Major Layoffs in HR as AI Investment Surges

More massive layoffs in store for Amazon workers as the company pledges billions to AI

Amazon workers could be facing yet another round of layoffs with as much as 15% of its human resources department at risk, Fortune reports. Sources confirm that the People eXperience Technology team (Amazon's HR) is likely to be the hardest hit, but other consumer businesses are also in the firing line. Amazon's workforce has been steadily decreasing since the end of 2022, with around 27,000 staff being laid off across a range of departments. This is continuing, especially with Amazon recently confirming it expects to cut human workers and replace them with AI. It seems clear that Amazon is reducing its workforce spending in order to prop up the $100 billion spend on data centers and infrastructure to support AI and data processing - pushing the company to a 32% global cloud market share during Q1 of 2025. Amazon CEO Andy Jassy, who has overseen the dramatic cuts as well as the huge data centre spending, wrote in a companywide email, also published on Amazon's corporate blog; "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." "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." This is part of an industry-wide pattern, with Intel planning to slash around 20% of its workforce, or around 25,000 employees in total. Alongside this, Microsoft let go roughly 9,000 of its staff as it pushes for investment into AI. TechRadar Pro did reach out to Amazon for more information, but we are yet to receive a response. Source: Fortune

Amazon is planning a new wave of layoffs, sources say | Fortune

Two sources told Fortune that Amazon's human resources division -- known internally as PXT or the People eXperience Technology team -- will be hard hit, but that other areas of Amazon's core consumer business are also likely to be affected. It couldn't be learned how many employees in total Amazon plans to let go, nor the exact timing of the cuts. The company laid off relatively small numbers of employees earlier this year in areas such as its consumer devices unit, its Wondery podcast division, and in Amazon Web Services. Amazon spokesperson Kelly Nantel declined to comment. Amazon's PXT division, which reports to senior vice president Beth Galetti, has more than 10,000 employees worldwide, and includes a large recruiting team, plus technology staff and other traditional HR roles. The new cuts come as Amazon continues to look for ways to lower employee costs while investing aggressively in AI products and infrastructure - both for internal use and to sell to enterprise customers. The company has said it intends to spend upwards of $100 billion in capital expenditures this year, as it builds out its cloud and AI datacenters. Amazon CEO Andy Jassy already oversaw the largest layoffs in company history from late 2022 into 2023, when the company cut at least 27,000 corporate jobs, which accounted for a high single digit percentage of the company's office jobs. Many other Big Tech companies also slashed their headcounts around that time as the pandemic receded and consumer demand trends changed. Now, many employers are looking to harness the power of AI -- initially for mundane and repetitive tasks and eventually for more complicated jobs -- to reduce the need to maintain the same level of human staffers on their payrolls. Jassy himself is one of them. The CEO fired a bit of a warning shot to his own employees in June, when he encouraged them to welcome this new AI-powered era. "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 wrote in a companywide email that was also published on Amazon's corporate blog. At the same time, Jassy also made a point to note that there won't be room on the bus for everyone: "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." Jassy, who succeeded Amazon founder Jeff Bezos in the CEO job in 2021, has earned a reputation as a cost-cutter (though to be fair, he inherited a company that many say had become wasteful and bloated in some areas). Amazon executives regularly require managers to hit a certain percentage goal for unregretted attrition, or URA - essentially a percentage of employees that the company would be OK losing, whether through voluntary departures, being "managed out," or through formal layoffs. But sources told Fortune that these cuts are being discussed differently internally than the typical URA process. While Amazon plans these layoffs of corporate roles, the company announced its typical holiday hiring spree of warehouse staff on Tuesday. This year, the company will hire 250,000 seasonal employees across its US warehouse and logistics networks. Amazon's stock price is down about a little more than 1% this calendar year, but 15% higher than it was 12 months earlier. The company will report earnings later this month.

Amazon Layoffs: Thousands more jobs at risk as AI revolution reshapes the company's workforce. Which department is the worst hit?

Amazon is reportedly planning significant layoffs, targeting about 15% of its human resources staff and potentially impacting other departments. This move aligns with the tech giant's strategy to invest heavily in artificial intelligence while reducing employee costs. CEO Andy Jassy has previously indicated that AI adoption will lead to workforce reductions as the company seeks efficiency gains. Tech giant Amazon is planning to cut about 15 percent of its human resources staff with potentially more layoffs in other departments, reports Fortune, according to multiple sources familiar with the plans. Not only Amazon's human resources division -- known internally as PXT or the People eXperience Technology team- will be hit but other divisions of the company will also be affected, the report said. It is not yet known how many employees in total Amazon plans to let go, nor the exact timing of the cuts. The company is pouring more resources into artificial intelligence while lowering employee costs. Earlier this year, Amazon laid-off its staff in its consumer devices unit, Wondery podcast division, and Amazon Web Services. Amazon's PXT division, which reports to senior VP Beth Galetti, has over 10,000 people globally. It deals with recruiting, technology, and traditional HR roles. ALSO READ: Kim Kardashian's 'most daring' faux hair underwears are already selling out, Internet says 'we should return to stone age' The latest round of cuts comes as Amazon continues tightening employee costs while ramping up its massive investments in artificial intelligence -- both to enhance internal operations and to expand its enterprise offerings. The company plans to pour more than $100 billion into capital expenditures this year, primarily focused on building out its cloud and AI data centers. CEO Andy Jassy previously led Amazon through its largest layoffs in history between late 2022 and 2023, eliminating over 27,000 corporate roles -- a high single-digit percentage of its office workforce. The move mirrored similar mass layoffs across Big Tech as pandemic-driven demand cooled and consumer habits shifted. Amazon is increasingly adopting AI to handle daily tasks and even more complex task. In June, Jassy encouraged employees to make the most of AI, emphasizing that those who develop AI skills and contribute to internal AI projects will have more opportunities in the coming days. ALSO READ: Politico bombshell: Full list of young Republican leaders caught sharing vile text messages on rape, slavery and Hitler He also warned that workforce reductions are expected with an increase in AI. "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 wrote in a companywide email that was also published on Amazon's corporate blog. Jassy also made a point to note that there won't be room on the bus for everyone: "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." Andy Jassy alluded to the possibility of layoffs in a June company email that was published on Amazon's corporate blog explaining that he expected the company's workforce to reduce in the next couple of years with the company using AI to manage more tasks. ALSO READ: Kat Stickler's secret date night: Who was the mystery man before John Mayer sighting? Shocking details emerge Forbes noted that Jassy also expressed that there may not be room for everyone at the organization, writing, "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." While Amazon plans these layoffs of corporate roles, the company announced its typical holiday hiring spree of warehouse staff on Tuesday. This year, the company will hire 250,000 seasonal employees across its US warehouse and logistics networks.

Amazon To Lay Off 15 Percent Of HR Employees After Jassy Said AI Will 'Reduce Our Total Corporate Workforce:' Report

'We expect that [AI] will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company,' said Amazon CEO Andy Jassy in June. The company is reportedly laying off up to 15 percent of its HR staff. Amazon is reportedly laying off up to 15 percent of its staff in its human resources division with additional layoffs in other divisions. As part of a broad AI-driven restructuring, Amazon is preparing to lay off a significant number of employees inside the company's HR division, known as the People eXperience and Technology (PXT), according to a report by Fortune citing multiple sources. Amazon's PXT division has over 10,000 employees worldwide, Fortune reported, including technology staff, a recruiting team and other traditional HR roles. [Related: Google Cloud Layoffs Hit Employees As Sales Reach Record Highs] Amazon did not respond to comment by press time on whether the layoffs were happening or if any employees at AWS would be impacted. In a companywide letter to employees in June, Amazon CEO Andy Jassy said that the company expects to "reduce" its corporate workforce due to "efficiency gains" in artificial intelligence. "As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today and more people doing other types of jobs," said CEO Jassy in his letter to employees. "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," Amazon's CEO said. Jassy said employees "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." Amazon's CEO said his company plans to spend $100 billion in capital expenditures in 2025 in a move to expand its AI and cloud data centers. Amazon's layoff news Wednesday comes a few months after AWS confirmed to CRN that the cloud and AI arm of Amazon eliminated some roles across AWS. "We've made the difficult business decision to eliminate some roles across particular teams in AWS," said an Amazon spokesperson in an email to CRN in July. "These decisions are necessary as we continue to invest, hire, and optimize resources to deliver innovation for our customers." Several groups within AWS were impacted by the layoffs, although the company did not provide details. Amazon is expected to report its quarterly financial earnings this month.

Amazon Cuts 15% of HR Jobs as AI Spending Continues | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Those cuts could include up to 15% of the tech giant's human resources (HR) staff, Fortune reported late Tuesday (Oct. 14), citing multiple sources familiar with the plans. Aside from HR, other areas of the company's consumer business are also likely to be affected, two of the sources said. The Fortune report notes that the cuts are happening at a time when Amazon is seeking ways to reduce employee costs while spending heavily on artificial intelligence (AI) products and infrastructure for in-house use and as an enterprise offering. Amazon has said it aims to spend more than $100 billion in capital expenditures this year, as it expands its cloud and AI datacenters. This follows a series of layoffs in other parts of the company earlier this year, including consumer devices unit, the Wondery podcast arm, and in Amazon Web Services (AWS). At the time, Amazon noted that it was still hiring throughout the company, including AWS roles. While those layoffs came soon after Amazon CEO Andy Jassy said that artificial intelligence (AI) would lead to job cuts, the company stressed to PYMNTS at the time that these cuts were not connected to AI, but instead followed a review of areas that could be streamlined. PYMNTS has reached out to Amazon for comment about this latest round of cuts, but has not yet gotten a reply. Jassy in June sent a message to Amazon workers saying that employees who have learned to use AI will be in a better position to be a part of the company. He added that Amazon's corporate workforce would likely shrink in the next few years as the company embraces AI, calling it the most transformative technology since the advent of the internet. "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 said in the message. Research from PYMNTS Intelligence, from the report "Workers Say Fears About GenAI Taking Their Jobs Is Overblown," found that more than half (54%) of workers said that generative AI posed a "significant risk of widespread job displacement." The study also found that 38% of workers said they were worried the technology could eventually lead to their jobs being eliminated.