Amazon is preparing for another round of corporate layoffs that will primarily impact its human resources division and core consumer business operations, according to sources familiar with the matter. The planned staff reductions come as the e-commerce giant continues its aggressive push into artificial intelligence technology while seeking to control operational costs across its corporate structure.
Targeted Divisions and Scale
Two sources confirmed to Fortune that Amazon’s People eXperience Technology team (PXT) – the company’s internal name for its human resources division – will be significantly affected by the upcoming cuts. The PXT organization, which reports to senior vice president Beth Galetti, employs more than 10,000 people worldwide and includes recruiting teams, technology staff, and traditional HR roles. While the exact number of affected employees remains unclear, sources indicate that other areas within Amazon’s core consumer business will also face staff reductions.
This represents the latest in a series of workforce adjustments at Amazon, following smaller layoffs earlier this year in divisions including consumer devices, the Wondery podcast unit, and Amazon Web Services. Company spokesperson Kelly Nantel declined to comment on the specific details or timing of the planned reductions.
Strategic Shift Toward AI Investment
The new layoff discussions occur as Amazon commits massive resources to artificial intelligence development and infrastructure. The company has announced plans to spend over $100 billion in capital expenditures this year, primarily focused on expanding its cloud and AI data center capabilities. This strategic pivot mirrors similar moves across the technology sector, where companies are increasingly leveraging AI technologies to automate tasks and reduce dependency on human labor.
Amazon CEO Andy Jassy explicitly addressed this transition in a company-wide email published on Amazon’s corporate blog in June. “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,” Jassy wrote. He notably added that “we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
Historical Context and Leadership Approach
Jassy, who succeeded Amazon founder Jeff Bezos as CEO in 2021, has developed a reputation for cost-cutting measures during his tenure. Between late 2022 and 2023, he oversaw the largest layoff program in Amazon’s history, eliminating at least 27,000 corporate positions representing a high single-digit percentage of the company’s office workforce. These cuts occurred alongside similar workforce reductions at other major technology companies as pandemic-driven demand patterns shifted.
Amazon executives have long employed a metric called “unregretted attrition” (URA), which requires managers to achieve specific percentages of workforce reduction through voluntary departures, performance-based dismissals, or formal layoffs. However, sources indicate the current discussions around workforce reductions are being handled differently from the typical URA process, suggesting a more strategic approach to the restructuring.
Industry-Wide AI Transformation
The move toward AI-driven workforce optimization extends beyond Amazon, with numerous technology companies reevaluating their staffing needs in light of advancing automation capabilities. As Salesforce CEO declares Agentforce AI part and parcel of their future strategy, and companies like Nvidia restructure around AI priorities, the industry-wide transformation continues accelerating.
This technological shift presents both opportunities and challenges for workers across sectors. The creator economy faces similar pressures to adapt to AI tools, while companies like OpenAI implement wellness initiatives to support employees through technological transitions. Industry observers including journalists like Jason Del Rey on Twitter and Jason Del Rey on Bluesky have been tracking these workforce transformations, with additional commentary available through Jason Del Rey’s Threads account.
Contrasting Workforce Strategies
While Amazon plans corporate staff reductions, the company continues hiring in other areas. This week, Amazon announced plans to hire 250,000 seasonal employees across its U.S. warehouse and logistics networks for the holiday shopping period. This dual approach – reducing corporate positions while expanding operational capacity – reflects the company’s ongoing optimization of its workforce mix amid changing business priorities.
The company’s stock performance has been mixed this year, with shares down slightly year-to-date but up approximately 15% compared to twelve months earlier. Investors will be watching closely when Amazon reports earnings later this month for additional insights into the company’s financial health and strategic direction.
Broader Implications for Tech Employment
Amazon’s continued workforce adjustments signal a broader transformation within the technology sector, where companies are rebalancing human capital investments toward emerging technologies like artificial intelligence. As automation capabilities advance, corporations increasingly view extensive human resources departments as areas for optimization, particularly when those resources can be redirected toward technological innovation.
The coming months will reveal how extensively Amazon implements these planned reductions and whether other major technology companies follow similar paths. What remains clear is that the industry’s relationship with human capital is evolving rapidly, with artificial intelligence playing an increasingly central role in corporate strategy and workforce planning across the technology landscape.
