Amazon
Amazon Reportedly Planning New Layoffs as AI Investment Surges
Amazon CEO Andy Jassy has made it clear that artificial intelligence is central to the company’s future. Amazon plans to spend over $100 billion this year on capital expenditures, much of it directed toward building AI and cloud datacenters — both for internal use and enterprise customers.
Tech giant Amazon is reportedly preparing for a new wave of corporate layoffs, with its People eXperience and Technology (PXT) division — essentially the company’s human resources arm — expected to face cuts of up to 15%, according to a report by Fortune.
Multiple sources familiar with the matter told the publication that while the PXT team will bear the brunt of the layoffs, other parts of Amazon’s consumer business could also be affected. The exact number of total job losses and the timeline for these cuts remain undisclosed. The move marks yet another phase in Amazon’s continued effort to trim costs and boost efficiency as it aggressively pivots toward AI-driven automation and infrastructure investment.
A Shift Toward AI-Powered Efficiency
Amazon CEO Andy Jassy has made it clear that artificial intelligence is central to the company’s future. Amazon plans to spend over $100 billion this year on capital expenditures, much of it directed toward building AI and cloud datacenters — both for internal use and enterprise customers.
In a companywide email earlier this year, Jassy encouraged employees to “embrace this new AI-powered era,” adding that those who adapt will have “high impact” in reinventing the company. But his message also came with a stark warning: “There won’t be room on the bus for everyone.”
That statement now appears prophetic. Amazon is using AI not only to enhance operational productivity but also to reduce headcount in roles that can be automated.
Amazon CEO Andy Jassy and AI
History of Job Cuts
This isn’t Amazon’s first round of layoffs under Jassy. Between late 2022 and 2023, the company executed the largest job cuts in its history, eliminating at least 27,000 corporate roles across divisions like devices, AWS, and media.
Earlier this year, smaller cuts were reported in the consumer devices unit, Wondery podcast division, and Amazon Web Services (AWS) — hinting that deeper restructuring was underway.
Now, insiders say the upcoming layoffs differ from Amazon’s usual “unregretted attrition” (URA) process — an internal policy that sets targets for employee departures. These cuts, they note, are being planned more strategically, signaling a broader transformation of Amazon’s workforce model.
Seasonal Hiring Continues — But for Different Roles
Interestingly, while corporate staff face layoffs, Amazon is simultaneously ramping up seasonal hiring, announcing plans to recruit 250,000 warehouse and logistics employees for the upcoming holiday season across the U.S.
The contrast underscores Amazon’s dual focus — reducing white-collar overhead while expanding blue-collar capacity to handle growing fulfillment demands.
Amazon’s stock (NASDAQ: AMZN) has remained relatively stable amid the restructuring news, currently trading around $216, up 15% over the past 12 months. However, investors will be closely watching the company’s upcoming earnings report for insight into how these layoffs and AI investments will affect long-term profitability.
As Amazon doubles down on automation, one thing is clear: the world’s largest online retailer is evolving fast — but not everyone will have a seat in its AI-powered future.
