Amazon's Shocking Layoff Plans: 15% of HR Jobs to Disappear Amid AI Shift!

The future of work is here, and it’s a tough pill to swallow for Amazon employees. The tech giant is gearing up for a significant wave of layoffs, targeting a staggering 15% of its human resources team, the People eXperience and Technology (PXT) division. This news, highlighted by sources in Fortune, marks a painful transition for a company that’s reshaping itself in the age of artificial intelligence.
While the exact number of affected employees remains uncertain, it’s clear that the PXT team will bear the brunt of these cuts, part of a broader strategy that could impact various sectors within Amazon's massive consumer business. This isn’t the first time Amazon has made headlines for layoffs; just months ago, smaller cuts were announced affecting teams in consumer devices, the Wondery podcast division, and even Amazon Web Services (AWS). However, this latest round seems to indicate a more profound restructuring as the company leans heavily into automation and efficiency.
In an era where AI is king, job security is becoming a thing of the past. As Amazon invests over $100 billion this year into its AI and cloud initiatives, the shift is palpable. CEO Andy Jassy, who took over the reins from Jeff Bezos in 2021, is steering the company towards an AI-centric future. In a company-wide memo, he encouraged employees to get on board with this new direction, stating, “Those who embrace this change... will be well-positioned to have high impact and help us reinvent the company.” Yet, he ominously warned that this pivot would likely lead to a reduction in the corporate workforce.
Jassy’s leadership has already seen Amazon undergo its largest layoff period in history, with around 27,000 corporate positions cut between 2022 and 2023. These initial layoffs were largely attributed to the overexpansion during the pandemic and shifts in consumer behavior. However, the current layoffs seem to be more strategically aligned with the company's long-term vision of incorporating AI at its core.
Adding to the irony of the situation, while the company prepares to bid farewell to many of its white-collar workforce, it is simultaneously ramping up holiday hiring. Amazon plans to onboard an impressive 250,000 seasonal workers to help meet the holiday demand across its U.S. warehouses and logistics network. This juxtaposition highlights a curious trend: even as the company trims its corporate fat, it continues to expand its operational workforce.
Jassy is known within Amazon as a cost disciplinarian, pushing for a certain level of “unregretted attrition,” a euphemism for employees the company is comfortable losing. Yet, insiders reveal that these upcoming cuts are not just part of the typical attrition cycles; they signal a more significant, structural reshaping of the company. For many in the PXT division, the digital clock is ticking, and the future remains uncertain as Amazon races towards an AI-driven operational model.