AI Push Sparks HR Layoffs at Amazon: 15% of Staff Affected Amid Cost-Cutting Drive
Amazon plans to cut 15% of its HR staff amid cost-cutting and AI expansion. Learn how the layoffs impact employees and the company’s AI-driven strategy.
Amazon headquarters in Seattle, where 15% of HR staff face layoffs as the company invests heavily in AI and cloud technology.
Amazon is reportedly planning to cut 15% of its Human Resources (HR) staff, signaling a broader cost-cutting and AI-driven restructuring initiative. Sources speaking to Fortune indicate that other divisions within Amazon’s core consumer business may also see reductions, though exact numbers and timelines have not been disclosed.
The PXT (People eXperience Technology) unit of HR, which is responsible for recruiting, technology, and traditional HR functions, and which has over 10,000 employees worldwide, is likely to be one of the biggest losers in the planned layoffs. The PXT reports to senior VP Beth Galetti.
Amazon's heavy investment in AI technology and cloud infrastructure to streamline operations and cut costs is behind this decision. The company has already allocated $100 billion for AI and cloud datacenters in 2025, which will be used both internally and for enterprises.
Andy Jassy, the CEO, who managed the company’s largest-ever layoffs in 2022–2023, had already warned earlier this year that with the coming of AI more and more operational tasks will be automated resulting in workforce reductions. However, he also indicated that those employees who are engaged in AI projects might be the ones getting new job opportunities.
Amazon, despite the layoffs, is recruiting 250,000 seasonal workers for its logistics and warehouse operations in the U. S. for the holiday season that is expected to be the busiest. The stock of the company has increased by about 15% over the last year, but the stock price has slightly declined in 2025 so far, and the quarterly earnings are expected to be released later this month.
