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Amazon Cuts 15% of HR Staff: AI Strategy Comes at Human Cost

Article Highlights:
  • Amazon cuts 15% of HR while investing $10B in AI and infrastructure
  • 27,000 layoffs since 2022: cost-reduction strategy to fund automation and AI
  • AI transition hits entire industry: Intel cuts 20%, Microsoft eliminates 9,000 jobs
  • Andy Jassy makes it clear: employees not adapting to AI risk falling behind
  • Amazon achieves 32% cloud market share in Q1 2025 through massive AI investments
  • Human cost of AI transition: job uncertainty and urgent need for worker reskilling
  • $100B investment in data centers: Amazon's strategic priority is artificial intelligence
Amazon Cuts 15% of HR Staff: AI Strategy Comes at Human Cost

Introduction

Amazon is preparing for another massive round of layoffs, with 15% of its HR department (People eXperience Technology team) facing potential job losses. This move reflects a broader corporate strategy: reducing workforce spending to fund colossal investments in artificial intelligence and data center infrastructure. With approximately 27,000 employees already laid off since 2022, Amazon exemplifies the industrial transformation driven by AI.

The Context: 27,000 Layoffs Since 2022

Amazon's workforce reduction is not a sudden phenomenon. Since the end of 2022, the company has systematically eliminated around 27,000 positions across various departments. However, this time the target is particularly strategic: the team responsible for managing human capital.

The People eXperience Technology team, responsible for human resources and personnel management, emerges as the hardest-hit department by the new cuts. Other consumer-facing divisions are also in the crosshairs, signaling a profound restructuring of the company's organizational hierarchy.

Massive Investment in AI and Infrastructure

Behind this workforce reduction strategy lies a gigantic spending plan. Amazon has confirmed it will invest up to 100 billion dollars in data centers and infrastructure to support artificial intelligence and data processing. In parallel, the company has allocated 10 billion dollars specifically for AI initiatives.

These colossal investments have already yielded tangible results: Amazon achieved a 32% global cloud market share during the first quarter of 2025. However, the cost of this AI market supremacy inevitably passes through traditional workforce reduction.

"We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."

Andy Jassy, CEO Amazon

Andy Jassy's Vision: AI as Strategic Priority

Amazon's CEO has made this priority explicit in a company-wide email also published on the corporate blog. Jassy does not hide the intent: AI-driven automation is Amazon's future, and employees who fail to adapt risk being left behind.

According to Jassy, those who embrace this change, develop AI competencies, and contribute to building and improving the company's internal AI capabilities will be "well-positioned to have high impact and help us reinvent the company." This message clearly signals that the era of traditional work at Amazon is in decline.

An Industry-Wide Phenomenon: Intel and Microsoft Follow Suit

Amazon is not an isolated exception. The entire tech industry is experiencing a similar AI-driven transformation. Intel has announced workforce cuts of 20%, equivalent to approximately 25,000 employees. Meanwhile, Microsoft has laid off roughly 9,000 employees while accelerating artificial intelligence investments.

This industry-wide pattern suggests that AI-related layoffs are not isolated choices but structural trends across the sector. Tech companies are massively reallocating resources: from traditional personnel and generic services toward AI research, development, and infrastructure.

The Human Cost of AI Transition

While AI investments promise efficiency and innovation, the human cost is immediate and tangible. Thousands of workers face occupational uncertainty and the need for rapid reskilling. Amazon's HR department, ironically responsible for managing human capital, becomes a victim of the company's own AI-promoting strategy.

This situation raises crucial ethical questions: How can technological transition be managed while preserving worker dignity and opportunity? How can companies invest in reskilling while cutting personnel costs? These questions remain largely unanswered in public discourse.

 

FAQ

What is the total number of Amazon layoffs since 2022?
Amazon has eliminated approximately 27,000 employees since the end of 2022 across various departments. These cuts are part of a broader cost-reduction strategy to finance massive investments in AI and cloud infrastructure.

Why is Amazon cutting HR staff to invest in AI?
Amazon is reallocating resources from traditional management toward automation and artificial intelligence. The company believes AI can handle functions currently requiring dedicated personnel, thereby reducing operational costs.

How much is Amazon investing in AI and data centers?
Amazon has confirmed investments of up to 100 billion dollars in data centers and infrastructure, with 10 billion dollars specifically allocated to artificial intelligence initiatives to support expansion of its data processing capabilities.

Are other tech companies doing the same?
Yes, the phenomenon is industry-wide: Intel is cutting 20% of its workforce (25,000 employees) and Microsoft laid off approximately 9,000 employees while accelerating AI investments.

Which departments are most affected by Amazon's AI-related layoffs?
The People eXperience Technology team (HR department) faces the highest risk with 15% at stake. Other consumer-facing divisions are also on the potential cuts list.

How does Andy Jassy justify AI-related layoffs?
Jassy argues that employees embracing change, developing AI skills, and contributing to internal AI capability improvements will be "well-positioned to have high impact and help reinvent the company."

What is Amazon's cloud market share in 2025?
During the first quarter of 2025, Amazon achieved a 32% global cloud market share, solidifying its leader position while continuing massive investments in AI and infrastructure.

Introduction Amazon is preparing for another massive round of layoffs, with 15% of its HR department (People eXperience Technology team) facing potential job Evol Magazine