Amazon is preparing for another round of workforce reductions, with plans to cut approximately 15% of its human resources staff. This move is part of a broader corporate strategy to integrate artificial intelligence and streamline operations, even as the company simultaneously prepares to hire 250,000 seasonal workers for the upcoming holiday period.
Key Takeaways
- Amazon intends to reduce its human resources department, known as the People eXperience and Technology (PXT) team, by about 15%.
- The staff cuts are linked to the company's increased investment in artificial intelligence and cloud infrastructure to improve efficiency.
- Despite the corporate layoffs, Amazon plans to hire 250,000 seasonal workers in the U.S., a figure consistent with the last two years.
- This decision follows the largest layoffs in the company's history in 2023, which affected nearly 27,000 corporate employees.
Details of the Planned Workforce Reduction
Amazon's human resources division, internally referred to as the People eXperience and Technology (PXT) team, is the primary target of the upcoming layoffs. Reports indicate that the company plans to reduce the department's headcount by as much as 15%.
The PXT division is a global operation with over 10,000 employees. Its responsibilities include traditional HR roles, recruiting, and managing the technology that supports the company's workforce. While the 15% target has been reported, the precise number of employees who will be affected and the exact timeline for the dismissals have not yet been publicly disclosed.
Sources suggest that the cuts may not be limited to the HR department. Some employees within Amazon's core consumer business could also be impacted in this next wave of restructuring. This follows earlier layoffs in 2025 that affected staff in the Amazon Web Services (AWS) and Wondery podcast divisions.
Strategic Shift Towards Artificial Intelligence
Investing in an AI-Powered Future
The decision to reduce staff in corporate roles is directly connected to Amazon's significant strategic pivot towards artificial intelligence. The company has publicly committed to integrating AI across its operations to drive efficiency and automate processes.
According to reports, Amazon has allocated a substantial $100 billion for capital investments in AI and cloud infrastructure for the year 2025. This massive investment underscores the company's belief that AI is fundamental to its future growth and competitiveness.
A History of Recent Layoffs
The planned cuts are part of a larger trend of workforce adjustments at Amazon. In 2023, the company executed its largest-ever series of layoffs, eliminating nearly 27,000 corporate positions. This restructuring occurred as Amazon, along with many other tech companies, adjusted its staffing levels following a period of rapid hiring during the pandemic.
Amazon CEO Andy Jassy has been a vocal proponent of this AI-centric strategy. He has communicated to employees that embracing AI is essential for the company's reinvention and long-term success.
CEO's Vision for an Efficient Workforce
In an internal email that was later published on Amazon's corporate blog, CEO Andy Jassy outlined the company's direction. He emphasized that the integration of AI would inevitably lead to changes in the workforce structure.
"We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," Jassy wrote in the email.
He also noted that not every employee would be accommodated in the new structure, signaling that further role eliminations were likely. Jassy's message encouraged employees to become proficient in AI to align with the company's future needs.
"Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company."
Contrasting Holiday Hiring Plans
While Amazon is reducing its corporate workforce in certain areas, its logistics and fulfillment operations are expanding to meet seasonal demand. The company has announced plans to hire 250,000 seasonal workers across its U.S. warehouses for the holiday shopping season.
Seasonal vs. Permanent Pay
Amazon stated that temporary holiday workers will earn an average of $19 per hour. In contrast, permanent roles within its fulfillment network will pay an average of $23 per hour, highlighting the pay differential between seasonal and long-term positions.
A report from Bloomberg noted that this hiring target of 250,000 is consistent with the numbers from the previous two years. This indicates that despite the corporate restructuring and AI push, the company's need for a large seasonal workforce for its core e-commerce business remains unchanged.
This dual strategy of reducing corporate staff while hiring a large number of temporary workers illustrates Amazon's focus: leveraging technology like AI to optimize corporate functions while maintaining a robust human workforce for essential physical tasks in its fulfillment centers.