Amazon Plans To Reduce 15% Human Resources Staff, Says Report
Fortune reported citing sources that Amazon is planning to reduce 15% of its human resources staff.
Amazon is planning to cut human resources staff by 15%, Fortune reported, citing sources. People eXperience Technology Team, human resource department of the company, will be the worst hit in the move.
Core consumer business will probably to be affected by the move as well. Fortune's report did not mention how many number of employees, and when they will be laid off.
Amazon's PXT division has more than 10,000 employees worldwide. The team includes a large recruiting team, plus technology staff and other traditional human resource roles, the report said.
Compared to other companies, Amazon has laid off a relatively small number of people early this year. The layoffs happened in its consumer devices unit, Wondery podcast division, and in the Amazon web series.
The company is looking for ways to lower employee costs while investing aggressively in artificial intelligence products and infrastructure. Amazon intends to increase the use of AI for internal use and to sell to enterprise customers, Fortune said.
Amazon has planned to spend upwards of $100 billion capital expenditure this year as it builds its cloud and AI data centres, according to the report.
Meanwhile, Amazon will likely add 250,000 to its workforce during its peak season, Bloomberg reported. The aggressive hiring during holiday season makes the company a standout in an otherwise bleak holiday labour market.
Amazon will hire for full-time, part-time, and season roles with temporary workers earning an average of $19 per hour, Bloomberg reported, citing a statement from Amazon. Pay for permanent roles averages $23 per hour.
US shoppers will likely spend $253.4 billion on online shopping during November and December, which indicates a 5.3% upside from 2024, according to Adobe Inc. However, shoppers are also planning to curb overall holiday spending because of tariff-related price increases and a weakening labour market, according to a survey released in September by PricewaterhouseCoopers, Bloomberg reported.
