Amazon cuts jobs within artificial intelligence unit amid billions in AI investment

Amazon confirmed another round of layoffs Wednesday, this time cutting jobs in its artificial general intelligence (AGI) group as the company continues to slash positions and dump money into AI.

The Seattle-based tech giant did not specify the number of jobs or which specific positions were impacted. Amazon’s AGI team focused on creating AI models, with other parts of its group working on silicon development and quantum computing initiatives, according to Reuters.

Amazon says the move reflects a shift toward its most important AI initiatives

On Thursday, Amazon confirmed the cuts to KIRO 7 in a statement:

“We’ve been building large AI models for several years, and it remains one of the most important things we’re working on,” Amazon stated. “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. That focus means some difficult decisions, including eliminating some roles within parts of our AGI organization, even as we continue to invest in the areas most important to our customers’ future.”

Amazon noted it is “committed” to providing support for impacted employees through their transitions. Each U.S. employee impacted by the cuts will receive pay and benefits for 90 days, outplacement job search support, access to transitional health benefits, and eligibility for a severance payment.

The company is slated to report second-quarter earnings next week. Amazon has forecast capital expenditures for the year to be $200 billion, up more than 50% from 2025, and is currently raising tens of billions of dollars in debt to fund AI, according to CNBC.

Amazon’s move continues a wave of job cuts stretching back months

Amazon has said it plans to use generative AI to replace corporate workers. It has also been reducing a workforce that ballooned during the pandemic.

In late January, Amazon slashed roughly 16,000 positions company-wide in its second round of mass layoffs in three months. The cuts impacted 2,198 Seattle-area employees, including more than 1,400 based in Seattle and another 630 in Bellevue.

Before that, Amazon cut approximately 14,000 corporate jobs in October 2025, close to 4% of its workforce, as the online retail giant ramped up spending on AI while trimming costs elsewhere.

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