Amazon gears up for mass layoffs in this department, sources say

Amazon is preparing to cut staff, with its human resources division expected to lose as much as 15% of its workforce, according to multiple sources familiar with the plans.

Other divisions within Amazon’s core consumer business are also likely to be affected, two sources told Fortune earlier this week.

The total number of employees to be laid off and the exact timing of the cuts have not been disclosed at this time.

Amazon did not immediately respond for comment on this story.

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The human resources division, known internally as the People eXperience Technology or PXT team, employs more than 10,000 people worldwide in recruiting, technology, and other HR roles.

These potential cuts come as the company continues to reduce employee costs while making significant investments in artificial intelligence.

Amazon previously stated plans to spend over $100 billion on capital expenditures this year to expand its cloud and AI data centers.

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Earlier this year, the company made smaller cuts in its consumer devices unit, the Wondery podcast division , and Amazon Web Services .

The new layoffs follow the largest job cuts in the company’s history , which occurred from late 2022 into 2023 when CEO Andy Jassy oversaw the elimination of at least 27,000 corporate positions.

In a company-wide email in June, Jassy hinted that the integration of AI could lead to a smaller corporate workforce.

“We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company,” he wrote.

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While corporate roles are being reduced, Amazon also announced on Tuesday its plan to hire 250,000 seasonal employees for its U.S. warehouse and logistics network for the holiday season.

The company’s stock price is down just over 1% this year, but it is 15% higher than it was 12 months ago. Amazon is scheduled to report earnings later this month.

Generative AI was used to write this story, based on data provided by Fortune. It was reviewed and edited by Advance Local.

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