Amazon is facing major layoffs, with 15% of its HR department being terminated.
The world’s largest e-commerce company, Amazon, is facing renewed calls for layoffs. Reports indicate that the company is preparing to eliminate approximately 15% of its employees from its Human Resources (HR) department. This decision is part of Amazon’s new AI-based strategy and restructuring of its cloud operations. According to a report in American business magazine Fortune, these layoffs will impact the company’s People Experience and Technology (PXT) team, Amazon’s primary HR department. This team comprises over 10,000 employees worldwide, covering recruitment, technology, and traditional HR roles. However, the report does not specify how many employees will be affected and when the layoffs will begin.
According to the report, this decision could also impact some of the company’s other core business sectors, such as consumer products and cloud services units. Earlier this year, Amazon laid off some employees from its consumer devices unit, Wondery podcast division, and Amazon Web Services (AWS).
The company’s major move toward AI and automation
Amazon CEO Andy Jassy has already made it clear that the company’s future now depends on AI and automation. He says that employees who embrace this change and demonstrate the ability to work with AI will advance within the company, while space for others will be limited. In an official email, Jassy wrote, “Those who embrace this change, understand AI, and help advance our technology will make a significant contribution to the company. But there won’t be room for everyone.” He also stated that the increasing use of AI will help the company improve efficiency, leading to a reduction in the overall corporate workforce.
Massive Investment in AI Infrastructure
According to reports, Amazon plans to invest more than $100 billion in AI and cloud infrastructure by 2025. This means the company will now focus more on recruiting, data management, and automating tasks using AI rather than traditional methods.
