MYNORTHWEST NEWS

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

Jul 23, 2026, 9:03 AM | Updated: 3:01 pm

Amazon layoffs ai...

An exterior view shows an Amazon fulfillment center. (Photo: Ethan Miller, Getty Images)

(Photo: Ethan Miller, Getty Images)

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.

Follow Jason Sutich on X. Send news tips here.

MyNorthwest News

e-scooter...

Brittany Perry, KIRO 7 News

5-year-old hospitalized with life-threatening injuries in crash involving car, e-scooter

Two children were injured in a crash involving an e-scooter and a car on Friday afternoon, and one of those children is fighting for their life.

3 hours ago

winco foods grocery store seattle renton opening...

MyNorthwest Staff

WinCo Foods recalls popular bread item distributed in WA

WinCo Foods has recalled a popular bread item due to an undeclared allergen.

3 hours ago

west seattle shot...

Regan Gallo-Fenz

Woman escapes date with convicted rapist in Seattle; new charges could bring life sentence

A convicted rapist could face life in prison without parole if convicted in a new sexual assault case stemming from a date in Seattle.

3 hours ago

Starbucks (8)...

MyNorthwest Staff

Starbucks in SEA Airport’s Terminal A to close, affecting 13 employees

A WARN notice filed by HMSHost lists layoffs affecting 135 Starbucks workers in Seattle and at SEA, including 13 employees at an airport location.

4 hours ago

Aurora Avenue shooting...

James Lynch

Nearly 120 shell casings found after gunfire on Aurora Avenue

The shooting happened in a parking lot near Aurora Avenue North and North 100th St.

5 hours ago

Vance...

DAVE COLLINS, The Associated Press

With hurricane off Mexico sharing name with Vice President JD Vance, the social media memes fly

As Vice President JD Vance travels the U.S. supporting Republican candidates in next month's election, another Vance is on a whirlwind tour.

5 hours ago

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