Layoff news: Amazon to slash 15% HR roles, others in new round of job cuts, says report
Amazon is reportedly set to slash as much as 15 per cent roles in its human resources department, besides some other roles, in a new round of layoffs.
Amazon layoff news: E-commerce and tech giant Amazon is set to slash as much as 15 per cent roles in its human resources department, besides some other roles, in a new round of layoffs, Fortune reported citing sources.
Amazon spokesperson Kelly Nantel declined to respond, it added.
While it is expected that Amazon's HR team, known internally as the People eXperience Technology team or PTX, which has over 10,000 staff globally, will take the most cuts, other core consumer business departments could also see some impact, two sources told the publication.
Why is Amazon likely to cut jobs?
As per the report, these job cuts come as the giant looks to reduce employee costs amid heavy investment in artificial intelligence products and AI infrastructure.
Amazon has stated it aims to spend over $100 billion capex in 2025 to build its AI data centres and cloud computing centres. These will be for sale to customers and for internal use, the report added.
From late 2022 into 2023, Amazon CEO Andy Jassy signed off on at least 27,000 job cuts at Amazon — largely from its corporate offices. The period saw many large tech companies, including Meta and Google, slashing jobs.
Andy Jassy emphasises AI: ‘Embrace this change’
In June, Andy Jassy in a company memo stressed the importance of AI adoption to employees. “Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company,” he wrote.
“We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company,” he added.
Amazon to hire 2,50,000 ‘holiday season’ workers
Amazon.com Inc. plans to hire 2,50,000 workers during its peak holiday season in full-time, part-time and seasonal roles. The company in a statement said that temporary workers will earn $19 per hour on average, and permanent roles will pay $23 per hour on average.
The 2,50,000 workers on holiday hire is unchanged from the previous two years, a Bloomberg report noted.
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