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Amazon refocuses AI priorities, cuts jobs in its artificial general intelligence (AGI) unit

Amazon has confirmed layoffs in its artificial general intelligence division, the latest in a string of targeted cuts as the company reshapes its AI strategy.
By Wocult Affairs
23 July 2026

Employees focused on model customisation and post-training were among those who said they were let go, according to LinkedIn posts. The company declined to disclose how many staffers were affected, or which parts of the AGI organisation were exposed to the cuts.

The AGI unit is focused on building AI models, and it also includes groups working on silicon development and quantum computing initiatives. It is a core part of Amazon's AI strategy as the company tries to keep pace with leaders OpenAI, Anthropic, and Google.

Amazon said US employees whose jobs are cut will receive 90 days of pay and benefits, outplacement support, and transitional health coverage, along with eligibility for severance.

Amazon has been downsizing over the past several years following a pandemic hiring binge, and as it commits massive sums to building out AI infrastructure. The company has laid off more than 30,000 staffers since October, and has continued to eliminate roles through smaller rounds in recent months.

In December, Amazon folded the AGI group into a larger organisation led by senior vice president Peter DeSantis that also includes chip development and quantum computing. The move also follows high-profile departures within Amazon's AGI leadership, including former AGI head Rohit Prasad and AGI Lab lead David Luan.

The cuts come as the company invests heavily in programmes to help businesses implement AI effectively, including a $1 billion initiative to embed AWS engineers with customers building agentic AI systems.

For working professionals in tech and AI roles, the cuts are a signal that even within a company's highest-priority AI division, tech giants are scrutinising whether the enormous sums being spent on AI are paying off in tools businesses actually use. AGI generally refers to AI that can perform as well or better than humans on most tasks, making roles in this space both high-profile and, as this round shows, not immune to restructuring.

Source:
CNBC
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