Amazon is preparing to lay off up to 15% of its HR department. More than 10,000 employees worldwide could be affected. Amid investments in AI and cloud, the company is reducing its workforce. These layoffs will particularly impact the People Experience and Technology (PXT) team.
Amazon layoffs: The global e-commerce and cloud company Amazon is set to lay off up to 15% of its Human Resources department. More than 10,000 employees worldwide will be affected by this change, particularly the People Experience and Technology (PXT) team. Amid increasing AI and cloud investments, the company is reducing its workforce, even as new employees will be recruited for the upcoming festive season.
HR Department Most Affected
More than 10,000 employees work in Amazon's Human Resources department worldwide. Many of these employees could face these layoffs. The People Experience and Technology (PXT) team, which handles important HR-related tasks, will be most impacted. However, the company has not yet made an official announcement regarding the exact number of employees to be laid off.
Anticipated Cuts in Other Departments Too
Besides Amazon's HR department, layoffs are also likely in several other departments. Just before this news, the company announced that it would recruit 250,000 employees for its US fulfillment and transportation network for the upcoming festive season. This paradox indicates that companies are having to balance their workforce with limited resources.
According to a Bloomberg report, approximately 110 people were recently laid off from Amazon's Wondery podcast division. Even the CEO of this division stepped down. The company cited extensive restructuring as the reason for this.
Impact of AI Investment and Transformation
As the scope of Artificial Intelligence (AI) expands, companies are emphasizing reducing their workforce. Amazon has not been immune to this change. This year, the company plans to invest approximately $100 billion in building cloud and data centers. The increasing use of AI and automation is reducing the need for human employees, leading to widespread layoffs.
History of Layoffs
Amazon has conducted large-scale layoffs last year and even before that. Between late 2022 and 2023, approximately 27,000 employees lost their jobs. At that time too, restructuring and AI investments were cited as the primary reasons.
Impact on Employees and Market
The layoffs in the HR department could most significantly affect employee morale and operations within the company. Furthermore, this move could become a source of concern for investors and the market. Amazon's layoff announcement indicates that companies globally are continuously reorganizing their workforces due to economic pressures and technological changes.
The Paradox of Hiring and Layoffs During Festive Season
Amazon's plan to recruit 250,000 new employees on one hand, and the layoffs in HR and other departments on the other, signifies that the company is reorganizing its operations and resources. This step is being taken to balance demand and workforce during the festive season.
