Tuesday, 02 January 2024 12:17 GMT

Amazon Reportedly Puts 1,500 HR Jobs On The Chopping Block As Big Tech Streamlines Under AI, Trump Tariffs


(MENAFN- AsiaNet News)

Amazon, Inc. is planning to reduce the size of its human resources division, known internally as PXT or the People eXperience Technology team, by 15%, according to a report in Fortune published late Tuesday.

The PXT division, which reports to senior vice president Beth Galetti, has more than 10,000 employees worldwide and includes some technology staff, according to the report.

The cuts could affect other divisions as well, according to the report, which cited multiple unnamed sources. Amazon did not respond to a Stocktwits query seeking confirmation and additional details.

The development underscores how Big Tech firms are continuing to implement targeted layoffs amid economic uncertainty under President Donald Trump and the growing adoption of AI technology.

Over the past few years, Amazon has eliminated several roles within its consumer devices, Alexa voice assistant, and Amazon Web Services divisions. In June, Microsoft announced it was laying off 3% of its global workforce, or roughly 6,000 workers.

Last month, Amazon CEO Andy Jassy reiterated a plan to remove excess management layers in the organization to improve the corporate culture and spur innovation.

The company is currently navigating the impact of headwinds from U.S. tariffs on its mainstay e-commerce business while investing in AI capacity to grow its cloud business. Despite healthy results last quarter, Amazon has underperformed this year, raising investor concerns.

AMZN shares are down 1.4% year-to-date, the worst performance among the Magnificent Seven stocks. On Stocktwits, the retail sentiment for Amazon was 'neutral' as of the last reading.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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