Two sources told Fortune that Amazon’s human resources division—known internally as PXT or the People eXperience Technology team—will be hard hit, but that other areas of Amazon’s core consumer business are also likely to be affected. It couldn’t be learned how many employees in total Amazon plans to let go, nor the exact timing of the cuts.
Amazon spokesperson Kelly Nantel declined to comment.
Amazon’s PXT division, which reports to senior vice president Beth Galetti, has more than 10,000 employees worldwide, and includes a large recruiting team, plus technology staff and other traditional HR roles.
Amazon CEO Andy Jassy already oversaw the largest layoffs in company history from late 2022 into 2023, when the company cut at least 27,000 corporate jobs, which accounted for a high single digit percentage of the company’s office jobs. Many other Big Tech companies also slashed their headcounts around that time as the pandemic receded and consumer demand trends changed.
Now, many employers are looking to harness the power of AI—initially for mundane and repetitive tasks and eventually for more complicated jobs—to reduce the need to maintain the same level of human staffers on their payrolls.
Jassy himself is one of them. The CEO fired a bit of a warning shot to his own employees in June, when he encouraged them to welcome this new AI-powered era.
At the same time, Jassy also made a point to note that there won’t be room on the bus for everyone: “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
While Amazon plans these layoffs of corporate roles, the company announced its typical holiday hiring spree of warehouse staff on Tuesday. This year, the company will hire 250,000 seasonal employees across its US warehouse and logistics networks.
Amazon’s stock price is down about a little more than 1% this calendar year, but 15% higher than it was 12 months earlier. The company will report earnings later this month.
