Amazon is making headlines again, but this time it’s not for a new gadget or a Prime Day deal. The e-commerce and cloud titan is preparing to lay off up to 15% of its global human resources staff—a move that signals a dramatic shift in how the company is betting on artificial intelligence to reshape its future.
AI Restructuring Hits HR Hard
Multiple sources, including
Fortune and
NDTV, report that Amazon’s
People eXperience and Technology (PXT) division—the company’s sprawling HR arm with over 10,000 employees worldwide—will be the hardest hit. The cuts are part of a broader restructuring aimed at slashing costs and doubling down on AI and cloud infrastructure.
While the exact number of jobs to be eliminated hasn’t been disclosed, the 15% figure could mean more than 1,500 HR roles are on the chopping block. The layoffs will affect recruiting, technology, and traditional HR positions, with ripple effects likely in other core consumer business areas as well.
Why Is Amazon Making These Cuts?
The timing isn’t random. Amazon is in the midst of a
massive investment spree, with over
$100 billion earmarked for AI and cloud data centers in 2025 alone. CEO Andy Jassy has been candid about the company’s need to “reduce employee costs while investing aggressively in AI products and infrastructure”. In a recent company email, Jassy hinted that AI-driven efficiency gains would mean “there may not be room for everyone at the organization”.
This isn’t Amazon’s first round of cuts. Earlier this year, the company trimmed staff in its consumer devices unit, Wondery podcast division, and Amazon Web Services (AWS). The latest layoffs, however, are notable for their scale and their focus on the HR function—a department traditionally seen as essential for managing Amazon’s vast workforce.
The Bigger Picture: Tech Layoffs and the AI Revolution
Amazon’s move is part of a broader trend sweeping the tech industry. In 2025 alone, giants like Microsoft and Meta have also slashed thousands of jobs, citing similar reasons: the need to streamline operations and invest in next-generation AI capabilities. For Amazon, the goal is to create a “leaner organizational structure,” save billions in annual costs, and foster a more agile, startup-like culture.
But the human cost is real. Employees in the PXT division are bracing for uncertainty, and other departments may soon face similar cuts. The company’s mandatory return-to-office policy, effective January 2025, could also prompt more voluntary departures among those resistant to on-site work.
What’s Next for Amazon—and Its Workers?
Despite the layoffs, Amazon is still hiring—at least for its warehouses. The company just announced plans to bring on 250,000 seasonal workers for its U.S. logistics network ahead of the holiday rush. But for corporate staff, especially in HR and management, the message is clear: adapt to the AI era or risk being left behind.
Industry analysts say Amazon’s aggressive pivot to AI could pay off in the long run, but it’s a high-stakes gamble. As the company prepares to report earnings later this month, all eyes will be on whether these bold moves translate into stronger financial performance—or spark further unrest among its global workforce.
Takeaway: Amazon’s latest layoffs underscore the seismic changes underway in Big Tech as AI transforms not just products, but the very structure of the companies that build them. For employees, the future is uncertain. For Amazon, the AI revolution is just getting started.
Sources
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