Amazon is set to undergo another round of corporate layoffs, particularly affecting its People eXperience and Technology (PXT) division, known for managing recruitment and HR technology. While details regarding the number of impacted employees and the timeline for this latest cut remain uncertain, sources suggest that additional areas within Amazon’s core consumer business could also experience reductions.
The layoffs come at a time when Amazon is significantly ramping up its investments in artificial intelligence (AI), with plans to allocate over $100 billion this year to enhance its cloud and AI data centers. This ambitious strategy aims to improve internal operations and provide advanced AI solutions to its customers. The PXT division employs over 10,000 people globally and is led by senior vice president Beth Galetti. Reports indicate that this division will bear the brunt of the layoffs.
Under the leadership of CEO Andy Jassy, who took over from Jeff Bezos in 2021, Amazon has already experienced substantial layoffs, totaling around 27,000 corporate jobs between late 2022 and 2023. This represents a significant portion of the company’s office-based workforce. Jassy’s focus on AI as a means to enhance operational efficiency has been underscored in company communications, wherein he has urged employees to embrace AI technologies. He noted that those who adapt and help develop Amazon’s AI capabilities will be pivotal in shaping the future of the company.
The upcoming layoffs mark a departure from Amazon’s typical attrition process, known as “unregretted attrition” (URA), which aims to allow for gradual workforce adjustments. Instead, these cuts are being managed as a distinct initiative in response to the efficiency gains anticipated from the increased utilization of AI across the organization.
Despite the corporate job cuts, Amazon remains committed to its growth strategy, planning to hire 250,000 seasonal workers for its U.S. warehouse and logistics operations ahead of the holiday season. This continued focus on staffing for peak seasons underscores the company’s dual strategy of streamlining corporate roles while still addressing operational demands. Additionally, Amazon’s stock performance has shown resilience, with a 15% increase over the past year, despite a slight decline of just over 1% in the current calendar year.
While the layoffs may suggest a tough organizational shift, the focus on AI investment presents opportunities for employees willing to reskill and adapt. As companies increasingly leverage technology to enhance productivity, the path forward could lead to more innovative roles and avenues within Amazon’s expanding business landscape.