Amazon to Slash Up to 15% of HR Staff in Major Layoff Plan

Amazon is preparing for a significant wave of layoffs once more. According to reports, the firm is planning to lay off up to 15% of the employees in its human resources department, which is internally referred to as the People eXperience and Technology (PXT) team.

The HR department will be the most severely impacted, according to many individuals Fortune cited, though job losses may also occur in other areas of Amazon’s sizable consumer business. As Amazon invests billions in its cloud and AI activities, the cutbacks are made.

Building next-generation data centres to support AI infrastructure for internal usage and business clients will account for a large portion of the company’s over $100 billion in capital investments this year.

Amazon Relying More on AI than Humans

AI will characterise this new era, and not all employees will make the shift, according to CEO Andy Jassy, who took over from Jeff Bezos in 2021. Jassy encouraged employees to support Amazon’s AI initiative in a June company-wide memo, stating that those who do so, learn about AI, assist Amazon in developing and enhancing its AI capabilities internally, and provide for customers will be in a strong position to make a significant contribution and assist in the company’s transformation.

However, he cautioned that the corporation anticipates a reduction in its overall staff as a result of the efficiency gains from the widespread use of AI throughout the organisation.

Amazon Changing its Hiring Strategies

Amazon has already experienced the biggest layoffs in its history under Jassy’s direction, eliminating almost 27,000 corporate positions between 2022 and 2023. The latest round of cuts is more strategic and linked to a long-term change towards AI-driven operations, whereas those cuts were primarily motivated by post-pandemic overexpansion and shifting consumer habits.

The irony is not lost on anyone: Amazon is increasing its holiday hiring binge while also getting ready to fire white-collar employees. In order to meet holiday demand, the company recently revealed intentions to hire 250,000 seasonal workers across its logistics network and facilities in the United States. Jassy has established a reputation as a cost-discipline enforcer within the organisation.

He is renowned for encouraging teams to reach a particular level of “unregretted attrition”, or workers the business is at ease losing through managed exits or resignations. However, according to sources, these upcoming layoffs are not like the usual attrition cycles, suggesting a more extensive structural reorganisation. Amazon’s people operations could be one of the biggest victims of its own transition as it strives to become more effective and AI-focused. The writing may already be on the (data-centre) wall for many people in the PXT division.