Amazon's AI Push Drives 15% Workforce Cut in HR and Beyond

Amazon is preparing for a new wave of layoffs, with sources indicating cuts could reach 15% of its human resources workforce and extend to other divisions, according to FortuneAmazon is planning a new wave of layoffs, sources say | Fortune^[1]. The People eXperience Technology (PXT) team, which oversees HR operations, is expected to be among the hardest hit, though consumer business units and Amazon Web Services (AWS) may also face reductions. The company, which has already trimmed staff in areas like devices, podcasts, and cloud services earlier this year, has not disclosed the total number of roles at risk or the timeline for the cuts.

CEO Andy Jassy has framed the layoffs as part of a broader strategy to integrate artificial intelligence (AI) into Amazon's operations, a move he described in a companywide email as inevitable and transformative. "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," Jassy wroteAmazon is planning a new wave of layoffs, sources say | Fortune^[1]. His remarks align with a growing industry trend where AI automates repetitive tasks, reducing reliance on human labor for roles ranging from data analysis to customer serviceamazon layoffs 2025 update: Amazon CEO reveals …^[2].

The upcoming cuts follow a significant restructuring in late 2022 and 2023, during which Amazon eliminated 27,000 corporate jobs-its largest layoffs to dateAmazon is planning a new wave of layoffs, sources say | Fortune^[1]. Jassy, who took over from Jeff Bezos in 2021, has maintained a focus on cost-cutting while investing heavily in AI and cloud infrastructure. The company plans to spend over $100 billion on capital expenditures this year, including AI-driven data centersAmazon is planning a new wave of layoffs, sources say | Fortune^[1].

Internal sources suggest the layoffs will differ from Amazon's standard attrition management practices. Typically, the company meets unregretted attrition (URA) targets-goals for voluntary departures or managed exits-but these cuts are being discussed more explicitly as a strategic workforce reductionAmazon is planning a new wave of layoffs, sources say | Fortune^[1]. Meanwhile, Amazon announced a holiday hiring spree for 250,000 seasonal warehouse workers, highlighting the contrast between its corporate and operational prioritiesAmazon is planning a new wave of layoffs, sources say | Fortune^[1].

The AI-driven transformation has sparked concern among employees. Jassy acknowledged in a CNBC interview that "there will be fewer people doing some of the jobs that the technology actually starts to automate," though he emphasized that AI would also create opportunities in fields like robotics and AI developmentamazon layoffs 2025 update: Amazon CEO reveals …^[2]. Analysts estimate the 2025 layoffs could save Amazon between $2.1 billion and $3.6 billion annually by reducing managerial roles.

Severance packages for affected employees are expected to follow historical patterns. Corporate staff typically receive 1-2 weeks of base pay per year of employment, capped at 20-26 weeks, while warehouse workers get a flat 1-2 weeks of pay. These packages, while consistent with Amazon's past practices, are less generous than those offered by peers like Meta and Google.

The layoffs underscore Amazon's broader push to streamline operations amid economic pressures and competitive pressures. As AI adoption accelerates, the company faces scrutiny over its workforce strategy and the human cost of automation. Jassy's vision of a leaner, AI-powered Amazon remains central to its future, even as critics question the balance between efficiency and employee well-being.