Amazon Prepares to Cut Up to 15% of Human Resources Staff in New Wave of Layoffs
In a move that is likely to send shockwaves through the tech industry, Amazon is planning to cut up to 15% of its human resources staff, with additional layoffs expected in other divisions, according to multiple sources familiar with the plans. This new wave of layoffs comes on the heels of earlier cuts in areas such as consumer devices and podcasting.
The company's human resources division, known internally as PXT (People eXperience Technology), is set to be hard hit, but other areas of Amazon's core consumer business are also likely to be affected. The exact number of employees to be let go remains unclear, as does the timing of the cuts.
Amazon has been aggressively cutting costs in recent months, while investing heavily in artificial intelligence (AI) and other emerging technologies. This shift towards AI has been a key focus for new CEO Andy Jassy, who took over from Jeff Bezos last year.
The layoffs are expected to have significant financial implications for Amazon, with some estimates suggesting that the company could save up to $1 billion per year by cutting its human resources staff. However, the move is also likely to be met with criticism from employees and industry observers, who may view it as a sign of a more austere approach to business under Jassy's leadership.
Amazon has been expanding its AI capabilities in recent years, with significant investments in areas such as machine learning and natural language processing. The company's focus on AI is seen as a key driver of growth and innovation, but it also requires significant investment in human resources to support the development and deployment of these technologies.
The layoffs are likely to have implications for Amazon's workforce, with some employees potentially facing redundancy or reassignment. However, the company has a history of supporting its employees through transitions, including offering outplacement services and career counseling.
As one industry observer noted, "Amazon is taking a more deliberate approach to cost-cutting, while still investing in areas that are critical to its long-term growth." Another added, "The layoffs may be seen as a sign of a more cautious approach under Jassy's leadership, but it's also a recognition that the company needs to adapt to changing market conditions."
Amazon's stock price has been relatively stable in recent months, with some analysts suggesting that the company's focus on AI and other emerging technologies is paying off. However, the layoffs are likely to be closely watched by investors and industry observers, who will be looking for signs of a more sustainable business model under Jassy's leadership.
In a statement, Amazon spokesperson Kelly Nantel declined to comment on the planned layoffs, saying only that "Amazon is always evaluating its workforce needs and making adjustments as necessary."
As the tech industry continues to evolve, it remains to be seen how Amazon will navigate the challenges of cost-cutting while investing in emerging technologies. One thing is clear: the company's approach to business under Jassy's leadership will be closely watched by investors, employees, and industry observers alike.
Key Statistics:
Up to 15% of human resources staff expected to be cut
Additional layoffs likely in other divisions
Estimated cost savings: up to $1 billion per year
Amazon's AI investments: significant focus on machine learning and natural language processing
Market Context:
Amazon's stock price has been relatively stable in recent months
Industry observers see the layoffs as a sign of a more cautious approach under Jassy's leadership
The company's focus on AI and other emerging technologies is seen as key to long-term growth and innovation
*Financial data compiled from Fortune reporting.*
