Amazon to Lay Off 15% of HR Staff Amid $100 Billion AI Investment Drive

E-commerce giant Amazon is preparing for another significant round of layoffs, reportedly targeting up to 15% of employees in its People eXperience and Technology (PXT) division — the company’s core human resources arm.

According to sources, this round could be one of the most substantial workforce reductions in recent times, with ripple effects potentially extending beyond HR into other consumer-facing business segments.

Although the exact number of affected employees and the timing of the cuts remain undisclosed, the restructuring underscores Amazon’s broader shift toward automation and AI-driven efficiency.

Automation and AI at the Heart of Amazon’s Strategy

The layoffs coincide with Amazon’s massive push into artificial intelligence and cloud computing infrastructure. The company is investing over $100 billion in capital expenditure this year, focusing largely on next-generation data centers to power AI capabilities for both internal systems and enterprise clients.

Amazon’s CEO Andy Jassy, who took over from Jeff Bezos in 2021, has made it clear that the company’s future hinges on its ability to integrate AI into every aspect of its operations.
In a memo sent to employees in June, Jassy stated:

“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.”

However, he also cautioned that:

“We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

This statement reflects Amazon’s growing intent to automate administrative and operational processes, leading to reduced dependency on human roles in areas such as HR, logistics, and customer support.

Historical Context: Layoffs and Restructuring

Under Jassy’s leadership, Amazon has already undergone its largest workforce reduction in company history. Between 2022 and 2023, the tech giant cut approximately 27,000 corporate roles, primarily due to post-pandemic overexpansion and a decline in online retail demand.

Unlike those reactive measures, the current layoffs are seen as strategic, signaling Amazon’s transition into a leaner, AI-powered organization.
Experts believe the company is now reengineering internal structures to ensure long-term profitability and technological dominance.

Holiday Hiring Amid Corporate Cuts

Interestingly, even as Amazon reduces its corporate workforce, it has simultaneously announced plans to hire 250,000 seasonal workers across the United States for the holiday season.
These roles, mainly in warehouses and logistics, are aimed at managing the surge in festive orders — a stark contrast to the shrinking corporate divisions.

Insiders describe Jassy as a strict cost disciplinarian, known for promoting “unregretted attrition,” where the company willingly lets go of employees deemed non-essential. However, current developments appear to go beyond routine staff trimming, pointing instead to a major structural overhaul within Amazon’s human resources operations.

AI Transformation and Workforce Impact

Amazon’s rapid transformation underlines a broader industry trend where artificial intelligence replaces traditional human functions in large corporations.
The HR division — traditionally reliant on human decision-making and emotional intelligence — may now see automation in areas such as recruitment, onboarding, and employee analytics through AI-driven tools.

Industry analysts say this shift is both inevitable and necessary for global companies seeking to maintain profitability amid increasing competition from other AI-heavy players like Google, Microsoft, and Meta.
However, critics argue that the human cost of these transitions could erode company morale and employee trust.

Conclusion

Amazon’s decision to potentially lay off up to 15% of its HR staff underscores the company’s accelerating shift toward AI-driven efficiency and automation.
While the move promises operational gains and cost savings, it also raises concerns about the future of white-collar employment in a world where technology increasingly replaces traditional roles.
As Amazon pushes forward with its $100 billion AI investment, the company seems determined to redefine its workforce for the digital era — even if that means leaving many of its human employees behind.