Amazon is planning a significant round of layoffs in 2025, focusing primarily on its human resources division, known internally as the People eXperience and Technology (PXT) team. The company intends to cut up to 15% of its HR staff, which comprises over 10,000 employees globally, including recruiters, technology staff, and traditional HR roles. Other divisions within Amazon's core consumer business may also experience job losses, though the exact number and timing remain unclear.
This wave of layoffs is part of a broader strategic restructuring centered around artificial intelligence (AI) and cloud operations. Amazon is investing heavily in AI infrastructure, with planned capital expenditures exceeding $100 billion in 2025 to build AI-powered data centers both for internal use and enterprise customers. CEO Andy Jassy emphasizes that as the company integrates AI to improve efficiency and automate processes, workforce reductions are expected. Jassy has encouraged employees to embrace AI and adapt to the transformation, warning that not all employees will remain as the company shifts towards an AI-driven model.
These layoffs come following earlier job cuts in 2022 and 2023 when Amazon reduced around 27,000 corporate roles due to post-pandemic demand changes. The current cuts are seen as more strategic and structural rather than reactive to market conditions. Interestingly, while Amazon is reducing white-collar roles, it is simultaneously expanding its holiday hiring, planning to employ around 250,000 seasonal workers across its US warehouse and logistics operations to manage peak demand.
In summary, Amazon’s 2025 layoffs reflect a significant shift toward AI integration, aiming for greater efficiency but resulting in substantial job reductions, especially in HR. At the same time, the company continues to bolster its operational workforce for seasonal demands.