While the company plans to hire around 250,000 workers during the holiday season with average wages between $19 and $23 per hour, it is simultaneously reducing its workforce to cut costs and improve efficiency.

This move is part of a broader industry trend of large-scale layoffs in the tech sector, driven by the need to adapt to rapid technological changes and economic pressures.

Amazon is undertaking a significant restructuring, including layoffs affecting its HR division, PXT, which employs over 10,000 people worldwide, as part of a strategic shift towards artificial intelligence and automation.

Experts see Amazon’s focus on AI and automation as indicative of a broader shift across tech giants, which are increasingly automating HR functions and workforce management to stay competitive.

Although Amazon has not disclosed the exact number or timing of layoffs, the company aims to reduce employee costs, signaling a move away from its traditionally large workforce.

The reduction in HR staff could slow recruitment efforts and increase workloads for remaining employees, but leadership views this as an opportunity to build a more agile, tech-driven organization.

This restructuring signifies a move from a workforce-heavy model to one increasingly driven by machine learning and automation, affecting even roles related to managing people.

Despite the lack of specific figures, Amazon’s leadership emphasizes that the layoffs are part of a strategic effort to cut costs and streamline operations.

Amazon’s stock has increased by about 15% over the past year, despite a slight decline of over 1% this year, reflecting investor confidence amid ongoing restructuring and AI investments.

The company has also faced controversy, including the firing of an employee who protested Amazon’s ties to Israel, highlighting ongoing internal and external challenges.

This wave of layoffs follows Amazon’s previous reduction of over 27,000 corporate jobs in late 2022 and early 2023, mainly affecting divisions like consumer devices, Wondery podcasts, and AWS, with current efforts focused on reducing recruitment and administrative costs.

Amazon’s CEO Andy Jassy has overseen these large layoffs, which are part of a broader industry trend of tech companies downsizing to adapt to economic and technological shifts.

The layoffs reflect a wider challenge faced by the industry, with many companies reevaluating their workforce amid economic uncertainty and a shift towards AI-enabled business models.