Amazon is cutting about 15% of its human resources staff. The company may make more cuts in other departments. Amazon wants to lower employee costs while spending more on artificial intelligence.
HR Division Faces Major Job Cuts
According to FOX 4 News, Amazon’s human resources division will lose workers in the new round of layoffs. The division is called PXT or People eXperience Technology team. Amazon has not said exactly how many employees will lose their jobs.
The PXT division has over 10,000 employees. The team includes recruiters, technology staff and other HR positions. Fortune reported that Amazon’s job cuts affect this division as the company shifts its spending priorities.
Company Shifts Focus to AI Investment
Amazon plans to spend roughly $100 billion in capital expenditures in 2025. The money will build cloud and AI data centers. The company wants to use AI products internally and sell them to consumers.
CEO Signals Workforce Reduction
Amazon CEO Andy Jassy wrote a company email in June that appeared on Amazon’s corporate blog. He said the company’s workforce would shrink in the next couple of years. AI will manage more tasks at Amazon.
Jassy also wrote that there may not be room for everyone at the organization. He said the company expects to reduce its total corporate workforce. Amazon will gain efficiency by using AI extensively across the company.
Amazon made earlier cuts to its AWS cloud computing division in July. The latest layoffs follow that round of job reductions. The company is balancing employee costs with major infrastructure spending.
Fortune noted that the exact number of affected employees remains undisclosed. The PXT division handles recruiting, technology and other human resources functions. Amazon continues to reshape its workforce as it invests heavily in AI technology and cloud infrastructure.
