Amazon is initiating another wave of corporate layoffs, with a strong focus on its human resources department, internally known as the People eXperience and Technology (PXT) team. Reports from sources cited by Fortune suggest that other parts of Amazon’s core consumer business may also see reductions, though the exact scope and timing remain unclear.
These job cuts are occurring as Amazon significantly escalates its commitment to artificial intelligence (AI). The company plans to inject over $100 billion this year into expanding its cloud and AI data centers. This substantial investment is intended to enhance internal operational efficiency and broaden its array of enterprise-level AI solutions for customers.
PXT Division Faces Significant Impact
Amazon’s PXT division, which oversees recruitment, HR technology, and other critical human resources functions globally with over 10,000 employees, is anticipated to experience the most severe impact from these impending layoffs, according to Fortune.
This strategic streamlining aligns with CEO Andy Jassy’s broader efficiency initiatives since taking the helm from Jeff Bezos in 2021. Jassy previously oversaw the largest layoffs in Amazon’s history between late 2022 and 2023, which resulted in at least 27,000 corporate job losses, impacting a substantial portion of the company’s office-based workforce.
AI Efficiency Drives Workforce Changes
Amazon’s intensified focus on AI is fundamentally reshaping its internal operations. In an internal memo shared on Amazon’s corporate blog and quoted by Fortune, Jassy emphasized, “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.”
In the same message, Jassy clearly articulated that Amazon expects a reduction in its corporate workforce as AI technologies become more widely adopted across the organization. He stated, as reported by Fortune, “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
Layoff Process Distinct from Standard Attrition
While Amazon typically sets “unregretted attrition” (URA) targets for managers—referring to employees lost through resignation, performance issues, or planned layoffs—Fortune’s sources indicate that these upcoming layoffs are being managed as a separate initiative, distinct from the usual URA process.
Holiday Hiring Continues Amidst Corporate Restructuring
Despite these corporate workforce reductions, Amazon announced plans to hire 250,000 seasonal workers for its US warehouse and logistics operations in preparation for the busy holiday season. In terms of market performance, the company’s stock has seen a 15% increase over the past year, although it is slightly down by just over 1% for the current calendar year.
When approached for comment by Fortune, Amazon spokesperson Kelly Nantel declined to provide further details regarding the layoffs.