Amazon plans fresh layoffs as artificial intelligence all set to replace 15% of HR staff

PTC Web Desk: Global e-commerce and tech giant Amazon is reportedly preparing for another major round of layoffs, this time targeting its Human Resources division, officially known as the People eXperience and Technology (PXT) team. According to a Fortune report citing multiple internal sources, up to 15% of HR staff could be impacted as the company undertakes a deeper restructuring of its workforce management system.

While the exact number of employees affected and the timeline of the layoffs remain uncertain, sources say cuts may extend beyond the HR department, possibly touching other segments of Amazon’s extensive consumer business. The development follows recent job reductions in the company’s consumer devices, Wondery podcast, and Amazon Web Services (AWS) divisions.

The layoffs are reportedly part of Amazon’s broader strategic pivot toward automation and artificial intelligence (AI). The company is investing heavily in AI and cloud technology, with over $100 billion allocated in capital spending this year, most of it directed at building next-generation data centres to strengthen its AI infrastructure for both internal operations and enterprise clients.

CEO Andy Jassy, who took over from Jeff Bezos in 2021, has emphasised that AI will define Amazon’s next phase of growth. In a memo earlier this year, Jassy urged employees to adapt to the company’s AI ambitions, writing that those who “embrace change and help enhance Amazon’s AI capabilities” will have a major impact. However, he also acknowledged that efficiency gains through AI adoption would inevitably lead to a reduction in the corporate workforce.

Interestingly, the layoff news coincides with Amazon’s announcement of a massive seasonal hiring drive. The company plans to bring on 2,50,000 temporary workers across its US warehouses and logistics units to meet the surge in holiday demand.