FILE-An Amazon employee passes by its logo on the opening day of the new distribution center. (Photo by SEBASTIEN BOZON/AFP via Getty Images)
Amazon is planning to cut about 15% of its human resources staff with potentially more layoffs in other departments.
Fortune reported that Amazon’s human resources division—known as PXT or the People eXperience Technology team—will be impacted by the job cuts. The exact number of employees losing their jobs hasn’t been disclosed.
Amazon’s PXT division has over 10,000 employees, including a large recruiting team, technology staff and other HR positions.
What’s behind the Amazon layoffs?
Why you should care:
Amazon’s latest round of layoffs come as the organization seeks ways to reduce employee costs while investing in AI products and infrastructure for company and use and to sell to consumers.
According to Fortune, Amazon plans to spend roughly $100 billion in capital expenditures in 2025, as it creates its cloud and AI datacenters.
RELATED: Amazon cuts hundreds of jobs in AWS cloud division
What they’re saying:
Amazon CEO Andy Jassy alluded to the possibility of layoffs in a June company email that was published on Amazon’s corporate blog explaining that he expected the company’s workforce to reduce in the next couple of years with the company using AI to manage more tasks.
Forbes noted that Jassy also expressed that there may not be room for everyone at the organization, writing, “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
These latest layoffs follow cuts Amazon made to its AWS cloud computing division in July.
The Source: Information for this story was provided by previous LIVENOW from FOX reporting, Fortune, and an Amazon company blog post. This story was reported from Washington, D.C.