Amazon to Cut 15% of Global HR Staff as AI Takes Over Employee Systems
Amazon Layoff: According to media reports, Amazon may once again announce layoffs. It is claimed that the company plans to eliminate approximately 15% of positions in its global HR organization, the People Experience Technology (PTX) team.
E-commerce and cloud giant Amazon might again make announcements of layoffs after the year 2025. The company is said to have mostly concentrated this time on the Human Resources (HR) department because Amazon is pushing AI technology further into its systems.
According to media reports, the company is planning to eliminate approximately 15% of positions in its global HR organization, the People Experience Technology (PTX) team. The PTX team, which handles all employee-related technology features and experiences, employs over 10,000 employees worldwide.
Amazon says this move is part of a broader strategy to reduce costs and increase efficiency. While the HR department will be primarily affected, job cuts are also expected in other departments within the core consumer business.
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It's no surprise that AI is the driving force behind this renewed layoff at Amazon. The company is investing heavily in AI technology, a process that has necessitated the company's reduction of employee costs to cover capital expenditures.
CEO Andy Jassy has previously outlined plans to spend over $100 billion in capital expenditures by 2025. This is dedicated to building AI data centers and cloud computing facilities for both internal use and customer sales.
Recently, CEO Jassy emphasized the importance of AI, advising employees to embrace this change in a company memo. He stated that the integrated use of AI will increase company efficiency and reduce the overall corporate workforce. This move by Amazon is believed to be part of a strategy to achieve cost savings and increase efficiency through technological innovation.
With this latest round of job cuts, Amazon is among a slew of tech firms that have shed thousands of corporate staff in recent years. The latest round of job cuts follows CEO Andy Jassy's approval of the removal of a minimum of 27,000 corporate roles at the company between late 2022 and 2023. It's not Amazon alone; Meta and Google have also followed suit.
