Up to 15% of HR Staff Could Be Impacted
In a major restructuring move, Amazon is preparing a new round of layoffs that could impact up to 15% of its Human Resources division, according to a report by Fortune. The cuts will primarily target the company’s People eXperience and Technology (PXT) team — Amazon’s internal HR and recruitment department — which employs more than 10,000 people globally.
Sources familiar with the matter told Fortune that additional layoffs could occur in other business areas, including parts of Amazon’s core consumer operations, as CEO Andy Jassy continues to streamline corporate expenses while shifting resources toward artificial intelligence (AI) development.
Restructuring for Efficiency and AI Investment
The timing of the layoffs coincides with Amazon’s aggressive investment in AI infrastructure and cloud technology. The company plans to spend nearly $100 billion in capital expenditures this year to expand its AWS datacenters and AI capabilities for both internal use and enterprise clients.
CEO Andy Jassy, who took over from Jeff Bezos in 2021, has earned a reputation for cost discipline. During his tenure, Amazon has reduced what insiders call “corporate bloat” through efficiency measures and workforce optimization.
In a companywide memo earlier this year, Jassy warned employees to “embrace the AI-driven transformation” or risk being left behind. He also noted that Amazon’s reliance on AI to automate internal processes would “reduce the total corporate workforce” over time.
Background: Previous Layoffs and Corporate Strategy
This isn’t the first wave of job cuts under Jassy’s leadership. From late 2022 through 2023, Amazon eliminated more than 27,000 corporate positions, marking the largest layoffs in its history.
Previous rounds primarily affected its consumer devices, Wondery podcast, and AWS divisions. The current focus on the PXT (HR) division suggests Amazon is looking to reduce recruitment and administrative costs as automation takes hold in back-office functions.
Industry experts believe this signals a strategic shift toward a leaner organization that relies heavily on AI tools to manage recruitment, performance, and workforce analytics — areas traditionally handled by human HR professionals.
AI and the Future of Amazon’s Workforce
The new layoffs come as Amazon continues its push to integrate AI across every business unit. The company recently announced several new AI initiatives designed to enhance logistics, supply chain management, and retail analytics.
Jassy’s long-term vision is for Amazon to become not only a leader in e-commerce and cloud computing, but also a global AI powerhouse capable of competing directly with Microsoft, Google, and OpenAI in the enterprise AI market.
However, employees within the PXT division reportedly view the layoffs as a warning that even core support teams are not immune to automation. As one internal source told Fortune, “AI isn’t just coming for warehouse jobs anymore — it’s changing white-collar work too.”
Layoffs Coincide with Seasonal Hiring Surge
Ironically, the corporate layoffs arrive just as Amazon announced plans to hire 250,000 seasonal warehouse and logistics workers for the 2025 holiday rush.
This dual announcement underscores Amazon’s two-tiered workforce strategy — automating and optimizing white-collar functions while maintaining its vast global logistics network.
Despite the cuts, Amazon remains profitable and stable, with stock performance up 15% year-over-year, even though it has slipped slightly in recent months. The company is expected to release its quarterly earnings report later this month, where analysts anticipate further commentary on workforce restructuring and AI-driven cost reductions.
Impact on Employees and Industry Outlook
Amazon’s HR division has been a cornerstone of its rapid global expansion, managing hiring across multiple continents. Analysts suggest that reducing HR headcount by 15% could lead to slower recruitment cycles and heavier workloads for remaining staff — at least in the short term.
Yet, Amazon’s leadership views this restructuring as an opportunity to build a more agile and tech-driven organization capable of adapting faster to market changes.
Tech industry observers note that this could also influence how other major corporations — particularly in the Big Tech sector — evaluate their own HR automation strategies amid the global shift toward AI-enabled business models.
Conclusion
The upcoming Amazon layoffs mark another significant step in CEO Andy Jassy’s ongoing efforts to optimize the company’s operations and invest heavily in AI-driven growth. While the PXT (HR) division appears to be the hardest hit, the broader message is clear: Amazon is preparing for a future where automation and artificial intelligence play a central role in both its business strategy and workforce management.
As the tech giant balances job cuts with massive AI investment, the move reflects a broader industry transformation — one where efficiency, automation, and innovation define the future of work.
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