Amazon Plans Major Layoffs — Up to 15% of HR Staff to Be Cut
Amazon is reportedly preparing for a significant round of layoffs, with its Human Resources division (internally called the People eXperience & Technology or PXT team) expected to see cuts of up to 15%. The move reflects the company’s push toward cost efficiency, automation, and increased investment in artificial intelligence (AI) and cloud infrastructure.
What’s Being Cut & Who’s Affected
- The PXT division has over 10,000 employees globally, including recruiters, HR professionals, and technology personnel who build and maintain internal systems.
- The 15% cut refers specifically to this HR-related division; details around when the cuts will happen or how many roles will be eliminated have not been officially confirmed.
- Other parts of Amazon’s operations — particularly consumer-oriented and core business divisions — might also see layoffs. However, PXT appears to be the hardest hit.
Reasoning Behind the Moves
- AI & Automation Push: Under CEO Andy Jassy, Amazon has signaled that efficiency gains from using AI, automation, and internal tooling will lead to a smaller corporate/support workforce over time.
- Cost Pressures & Restructuring: The company has already carried out multiple smaller rounds of layoffs this year in divisions such as AWS, devices & services, and content/podcasts (e.g. Wondery). Those past cuts are part of a broader strategy to streamline and redirect resources.
- Capital Investments: Despite cutting staff, Amazon is increasing its capital expenditure, especially in cloud infrastructure and AI data centers. The company expects to spend well over $100 billion this year on such investments.
Potential Implications
- For Affected Employees: Those in the PXT division whose roles are redundant or automatable may lose their jobs. There is likely to be disruption in internal HR and tech support functions tied to those roles.
- Organizational Impact: Scaling back HR firms, especially roles tied to recruitment, employee experience, and tech tools for HR, could slow down new hiring and possibly affect morale, depending on how changes are managed.
- Strategic Gains vs. Risks: While the move may help Amazon reduce costs and modernize, it also risks losing institutional knowledge and could increase pressure on remaining teams. There could be internal resistance, talent attrition, or negative impact on employer image if the layoffs are poorly handled.
- Wider Tech Sector Echoes: Many tech companies are using AI and automation to re-evaluate their workforce. Amazon’s announcement adds to a pattern seen across the industry: fewer corporate roles with more emphasis on technology, efficiency, and automation.
What We Don’t Yet Know
- The exact timing of the layoffs and whether they will happen all at once or in phases.
- The total number of people to be laid off in the PXT team or elsewhere; only percentages and approximate sizes of divisions are known.
- Whether impacted employees will be offered severance, retraining, or relocation, or whether there will be internal redeployment.
- How Amazon will balance these cuts with its hiring for seasonal or fulfillment/logistics roles (which often expand ahead of holiday periods).
Conclusion
Amazon’s plan to cut up to 15% of HR roles in its PXT division underscores a shift in how large tech companies are organizing around automation, efficiency, and AI. As it makes room for stronger investment in technology infrastructure, the company is making tough decisions on its workforce. How well those decisions are executed — and how Amazon supports affected employees during this change — will shape its internal culture, external reputation, and ability to adapt to a rapidly evolving business environment.
