Amazon has laid off an undisclosed number of employees within its Artificial General Intelligence (AGI) organisation, underscoring a broader trend among technology companies of trimming select teams while continuing to invest heavily in artificial intelligence.
The company confirmed the job cuts on Wednesday but did not disclose how many employees were affected or identify the specific teams impacted. According to CNBC, the reductions include employees working on AI model customisation and post-training, some of whom announced their departures on LinkedIn.
In a statement, an Amazon spokesperson said the move was part of an effort to prioritise projects with the greatest customer impact in an increasingly competitive AI landscape.
“This is a fast-moving space, and we’re sharpening our focus on the initiatives that matter most for customers, so we can move faster on what counts,” the spokesperson said, adding that the company had made “some difficult decisions” to eliminate roles while continuing to invest in strategic AI initiatives.
The layoffs come even as Amazon accelerates spending on AI infrastructure and next-generation technologies. Since late 2022, the company has eliminated more than 30,000 jobs as part of a broader restructuring programme that followed rapid pandemic-era hiring. In recent months, however, Amazon has shifted away from large-scale workforce reductions in favour of more targeted cuts across individual business units.
At the same time, the company is significantly increasing capital investment to strengthen its AI capabilities. Amazon has projected capital expenditure of around $200 billion this year, representing an increase of more than 50% compared with 2025, while also raising tens of billions of dollars in debt to finance new AI infrastructure.
The AGI organisation sits at the centre of Amazon’s long-term artificial intelligence ambitions. The division oversees the development of advanced AI systems, including foundation models, alongside teams working on custom silicon and quantum computing technologies.
Amazon expanded its AI portfolio in 2024 with the launch of its Nova family of foundation models, as it sought to strengthen its position against rivals such as OpenAI, Anthropic and Google in the rapidly evolving generative AI market.
The organisation has also undergone leadership changes over the past year. In December 2025, longtime cloud executive Peter DeSantis took over leadership of the AGI unit from Rohit Prasad, while David Luan, who joined Amazon following its acquisition of AI startup Adept, stepped down earlier this year as head of the company’s AGI laboratory.
Speaking to CNBC last month, DeSantis acknowledged that Amazon’s AI models had yet to reach the industry’s cutting edge for the most demanding workloads, but said the company was continuing to improve their capabilities with the aim of developing some of the world’s most advanced AI systems.
The latest restructuring reflects a wider shift across the technology industry, where companies are reassessing workforce needs as AI development accelerates. Rather than slowing investment, many firms are redirecting resources towards high-priority AI initiatives while streamlining teams in areas deemed less critical to long-term growth.
Amazon is expected to provide further insight into its AI strategy and spending plans when it reports its second-quarter financial results next week, with investors closely watching how the company balances cost discipline with its expanding AI ambitions.
Published On Jul 23, 2026 at 03:00 PM IST
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