Amazon is poised to reduce up to 15% of its human resources staff, known internally as the People eXperience and Technology (PXT) team, as part of a sweeping AI-driven restructuring, according to a report by Fortune citing sources familiar with the matter. The PXT department, which comprises over 10,000 employees globally, including recruiters, technologists, and traditional HR roles, is at the center of this cost-cutting initiative. While the exact number of affected employees and the timeline remain undisclosed, the layoffs are expected to extend to other areas of Amazon’s core consumer business, signaling a broader shift toward automation and efficiency.

The restructuring aligns with Amazon’s aggressive investment in artificial intelligence and cloud infrastructure, with over $100 billion allocated for 2025. CEO Andy Jassy has repeatedly emphasized AI’s pivotal role in the company’s future, driving operational efficiencies across its sprawling operations. This move follows a pattern of workforce reductions, with Amazon having cut 27,000 corporate roles between late 2022 and 2023—the largest layoffs in its history—alongside earlier cuts in its consumer devices unit, Wondery podcast division, and Amazon Web Services in 2025.

Jassy’s vision for an AI-centric Amazon was outlined in an internal email, also published on the company’s corporate blog, where he underscored the need for employees to embrace AI to remain relevant. “Those who become conversant in AI and help us build and improve our AI capabilities will be well-positioned to have high impact,” Jassy wrote, while acknowledging that not all employees would be accommodated as AI adoption reduces the need for certain corporate roles. The company’s focus on automation is expected to streamline operations but at the cost of a leaner corporate workforce.

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Despite the layoffs, Amazon is gearing up for the holiday season by planning to hire 250,000 seasonal workers across its US warehouses, highlighting its dual strategy of scaling operational capacity while optimizing its corporate structure. The reported layoffs have sparked concerns about job security in the tech sector, particularly as companies increasingly rely on AI to replace traditional roles. As Amazon doubles down on its technological transformation, the balance between innovation and workforce stability remains a critical challenge.

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