The world’s largest e-commerce company, Amazon, is facing renewed calls for layoffs. Reports indicate the company is preparing to eliminate approximately 15% of its Human Resources (HR) department.
This decision is part of Amazon’s new AI-based strategy and restructuring of its cloud operations. According to a report in the American business magazine Fortune, these layoffs will impact the company’s People Experience and Technology (PXT) team, Amazon’s primary HR department. This team comprises over 10,000 employees worldwide, covering recruitment, technology, and traditional HR roles. However, the report does not specify how many employees will be affected and when the layoffs will begin.
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According to the report, this decision could also impact some of the company’s other core business sectors, such as its consumer products and cloud services units. Earlier this year, Amazon laid off some employees from its consumer devices unit, Wondery podcast division, and Amazon Web Services (AWS).
The company’s big step towards AI and automation
Amazon CEO Andy Jassy has already made it clear that the company’s future now depends on AI and automation. He says that employees who embrace this change and demonstrate the ability to work with AI will advance in the company, while space for others will become limited. Jassy wrote in an official mail, “Those who embrace this change, understand AI, and help advance our technology will make a significant contribution to the company. But there won’t be room for everyone.” He also said that the increasing use of AI will help the company increase efficiency, which will lead to a reduction in the total corporate workforce.
Heavy investment in AI infrastructure
According to the report, Amazon plans to invest over $100 billion in AI and cloud infrastructure by 2025. This means the company will now focus more on AI-assisted hiring, data management, and task automation than traditional methods.
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