In a sweeping move that underscores the tension between cost control and artificial intelligence ambitions, Amazon is reportedly preparing to eliminate roughly 15 percent of its human resources (HR) division. The decision comes as the e-commerce giant ramps up its investment in AI and cloud infrastructure, sparking concerns about how labor-driven functions may be reshaped in the coming years.
According to sources speaking to Fortune, the cuts will focus on Amazon’s HR arm, known internally as PXT (People eXperience Technology). PXT is responsible for recruitment, HR operations, and internal tech support aimed at streamlining people processes. Globally, the division employs more than 10,000 individuals and reports to Senior Vice President Beth Galetti. Although Amazon has not formally disclosed the timing or exact headcount, the reported 15 percent reduction would affect a substantial number of staffers.
While the HR unit appears to be the immediate target, observers say other business segments—particularly those tied to Amazon’s core consumer operations—may see further cuts. In recent years, the company has already pared down operations in its consumer devices division, the Wonderland podcast division, and segments of Amazon Web Services.
Amazon’s cost-cutting drive coincides with its aggressive pivot toward AI and infrastructure investment. In 2025 alone, the company plans to allocate over $100 billion in capital expenditures to build out AI datacenters and expand cloud capabilities. The push reflects a broader trend in Big Tech, where automation and intelligent systems are increasingly able to assume tasks once handled by human labor.
In line with that shift, Amazon’s CEO Andy Jassy has repeatedly emphasized the importance of AI literacy within the workforce. In a June address, he urged employees to hone AI-related skills and warned that redundancy is possible without adaptability. Indeed, the company has framed the layoffs as part of a transformation: those who contribute to internal AI initiatives may be better positioned for retention or redeployment.
Despite the upcoming cuts, Amazon is still planning to ramp up hiring in other areas, particularly in its logistics and warehouse operations. The company expects to recruit around 250,000 seasonal workers in the U.S. this year to handle increased demand on the ground.
The strategic shift appears paradoxical—slashing headcount in one function while plowing capital into new infrastructure—but Amazon is not alone. Many technology firms have overhauled organizational structures to reduce manual overhead and align with AI-driven futures. Amazon itself executed one of its largest previous workforce reductions between late 2022 and 2023, cutting some 27,000 corporate roles—a wave that accounted for a high single-digit percentage of its white-collar staff.
As investors await Amazon’s next earnings report, the company’s stock—up roughly 15 percent year-over-year—has already factored in both optimism around its cloud and AI ventures and concern over scaling back human capital. The coming weeks may clarify whether the PXT reductions mark just the beginning of a broader restructuring, or if Amazon will redraw boundaries between human and machine labor in select domains.
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