Amazon is preparing for another major workforce reduction, this time targeting its human resources division, as the company doubles down on artificial intelligence (AI) and automation. According to a Fortune report, the tech giant plans to lay off around 15% of its HR staff as part of a broader restructuring effort aimed at streamlining operations and reallocating resources toward AI and cloud infrastructure.
This move follows earlier layoffs affecting employees in Amazon Web Services (AWS) and the Wondery podcast division. The company’s latest decision underscores its shifting priorities as it positions AI at the core of its next phase of growth.
Despite the cuts, Amazon also plans to hire 250,000 seasonal workers across U.S. warehouses for the holiday season — the same number as in previous years. The company said temporary workers will earn an average of $19 per hour, while permanent roles will pay around $23 per hour, according to Bloomberg.
Amazon’s HR unit, known internally as the People eXperience and Technology (PXT) team, oversees recruiting, HR technology, and employee programs. With more than 10,000 employees globally, the PXT division is expected to undergo significant restructuring, although the company has not disclosed how many roles will be eliminated or when the layoffs will take effect.
Sources also suggest that some employees in Amazon’s core consumer business could be impacted in upcoming rounds of workforce reductions.
The company’s growing investment in AI reflects its long-term vision. Reports indicate that Amazon has earmarked roughly $100 billion for AI and cloud infrastructure development in 2025. CEO Andy Jassy has repeatedly highlighted AI’s central role in driving efficiency, automation, and innovation across Amazon’s operations.
In 2023, Amazon executed one of the largest corporate layoffs in its history, eliminating nearly 27,000 positions. The upcoming round of cuts marks another step in the company’s ongoing realignment toward a more AI-driven business model.
In a companywide email shared publicly, Jassy emphasized the need for employees to embrace the technological shift. “Those who adapt to AI, learn its capabilities, and integrate it into their work will be well-positioned to thrive at Amazon,” he said. “We expect to gain significant efficiency from our use of AI, which will inevitably reduce the size of our corporate workforce over time.”
As Amazon retools its workforce for the AI era, industry analysts say the move mirrors a broader trend across the tech sector — where companies are increasingly replacing traditional roles with AI-powered automation to cut costs and improve productivity.
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