- Amazon plans to reduce its People eXperience Technology (PXT) team by 15%.
- The cuts may also impact other divisions within the company.
- The PXT division currently has over 10,000 employees worldwide.
- These layoffs come amid ongoing challenges, such as economic uncertainty and increased use of Artificial Intelligence.
- Amazon shares are down 1.4% year-to-date, the lowest among the Magnificent Seven tech stocks.
Amazon.com, Inc. is preparing to cut approximately 15% of its human resources division, known internally as the People eXperience Technology (PXT) team, according to a recent report. The PXT team oversees human resources and some technology functions.
The division, which falls under senior vice president Beth Galetti, employs more than 10,000 people globally. The planned reduction could affect other company divisions, as reported by multiple unnamed sources. Amazon has not issued a public response or provided additional details at this time.
This move reflects a trend among major technology firms to implement targeted job cuts in response to ongoing economic uncertainty and the increasing use of artificial intelligence (AI). In recent years, Amazon has also made cuts in its consumer devices, Alexa voice assistant, and Amazon Web Services (AWS) groups. Other tech companies, such as Microsoft, have announced similar workforce reductions, including roughly 6,000 jobs in June.
Last month, Amazon CEO Andy Jassy confirmed the company’s strategy to eliminate unnecessary management roles, stating the aim is to improve the internal culture and encourage innovation. The company is also working through the effects of new U.S. tariffs on its e-commerce operations and investing in AI to expand its cloud offerings.
Despite reporting steady financial results in the previous quarter, Amazon has lagged behind in stock performance. Shares have declined 1.4% since the start of the year, marking the company as the weakest performer among major tech stocks often referred to as the “Magnificent Seven.” For more information, see the original Fortune report.
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