Amazon is reportedly preparing a large new round of global corporate layoffs. Multiple sources say the company will reduce a significant portion of its Human Resources staff to improve efficiency and adopt more automation.

The People eXperience and Technology (PXT) division, which manages hiring and employee pay, will see up to 15 per cent of its staff laid off. This division currently employs more than ten thousand people worldwide.

While the PXT team is expected to be hit hardest, additional layoffs are likely across other core departments in Amazon’s consumer business. The total number of roles affected and the timing of the cuts have not been announced.

AI to reshape workforce

The restructuring comes as Amazon invests heavily in Artificial Intelligence (AI). The company plans to spend over $100 billion this year on cloud and AI data centres.

Chief Executive Officer Andy Jassy, who oversaw the removal of more than 27,000 corporate roles in 2022 and 2023, said AI will fundamentally change the company. He warned that efficiency gains from AI are likely to reduce the total corporate workforce. Smaller layoffs have already taken place in Amazon Web Services and the Wondery podcast division.

Seasonal hiring continues

At the same time, Amazon is hiring 2,50,000 temporary workers for its US warehouses and logistics networks to handle increased demand during the holiday season.