Amazon is bracing for another sweeping round of layoffs, this time targeting its human resources arm known internally as the 'People eXperience and Technology' (PXT) division. According to a Fortune report, as much as 15 per cent of the HR workforce could lose their jobs in what insiders are calling one of Amazon’s most significant internal overhauls in years. While the precise number of affected employees remains unclear, sources suggest that several other departments may also be on the chopping block as the tech giant pivots towards automation.
Leaning on AI, letting go of people
The layoffs come at a time when Amazon is investing heavily in artificial intelligence and cloud infrastructure. The company has earmarked over $100 billion this year for capital expenditure, most of it funnelled into next-generation data centres designed to power its AI ecosystem. CEO Andy Jassy, who succeeded Jeff Bezos in 2021, has repeatedly emphasised that Amazon’s future lies in AI-driven transformation.
In a June memo to employees, Jassy had signalled this shift, writing that 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.” The note also carried a blunt warning: increased AI efficiency would inevitably reduce corporate headcount.
The current cuts follow earlier layoffs in Amazon’s consumer devices unit, Wondery podcast division, and Amazon Web Services. Together, they mark a deeper cultural shift at one of the world’s largest employers, a company now trading people for performance metrics.
Holiday hires, human exits
The timing has sparked unease. Even as corporate staff brace for pink slips, Amazon is simultaneously planning to hire 2,50,000 seasonal workers across its US logistics network to handle the year-end shopping rush. The irony of simultaneous hiring and firing hasn’t gone unnoticed.
Inside the company, Jassy is known for his focus on “unregretted attrition” which is a polite term for streamlining teams by quietly letting go of those deemed non-essential. But multiple insiders told Fortune that this round feels different. It’s not routine trimming; it’s restructuring.
As Amazon doubles down on AI and automation, its people operations may soon become one of its biggest casualties. For thousands in the PXT division, the company’s reinvention might come at the cost of their own.