Amazon is preparing to eliminate up to 15 percent of positions in its human resources division, known internally as People eXperience and Technology (PXT), as the company accelerates its shift toward AI-driven operations, according to multiple sources cited by Fortune.
Amazon Layoff Scope
While the HR unit will be hardest hit, other parts of Amazon’s consumer business may also face job reductions. The total number of affected employees and timing remain unclear. The move follows smaller layoffs in recent months across the consumer devices group, Wondery podcast arm, and Amazon Web Services.
AI Investment Strategy
The cuts coincide with Amazon’s massive AI infrastructure investment, with over $100 billion committed this year for capital expenditures, primarily for next-generation data centers supporting AI capabilities for internal use and enterprise clients.
CEO’s Directive
CEO Andy Jassy, who succeeded Jeff Bezos in 2021, outlined the company’s AI-first approach in a June company-wide memo: “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.”
However, he warned: “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
Historical Context
Under Jassy’s leadership, Amazon already conducted its largest layoffs, cutting approximately 27,000 corporate roles between 2022 and 2023. Those reductions stemmed from post-pandemic overexpansion, while current cuts represent strategic restructuring tied to AI-driven operations.
Ironically, while preparing white-collar layoffs, Amazon recently announced plans to hire 250,000 seasonal employees across US warehouses and logistics networks for holiday demand.
Management Approach
Insiders report Jassy has built a reputation as a cost disciplinarian, pushing teams toward “unregretted attrition”—employees the company is comfortable losing through resignations or managed exits. Current cuts reportedly differ from routine attrition cycles, suggesting broader structural changes.
Industry Implications
The restructuring reflects Amazon’s prioritization of AI efficiency over traditional workforce models, potentially making its people operations division a casualty of its own technological transformation. The move aligns with broader tech industry trends of reducing headcount while increasing automation and AI capabilities.
For PXT division employees, the situation signals fundamental changes in how Amazon manages its workforce amid its AI-focused evolution.
