Amazon has reduced employee numbers in its Artificial General Intelligence (AGI) division. This news comes when the company is already expanding its spending on AI infrastructure and technologies. The company has not disclosed the exact number of employees affected or the specific teams impacted.
Some workers involved in AI model customization and post-training activities have shared updates about losing their jobs on LinkedIn. The AGI division leads Amazon’s efforts to build advanced AI models. It also includes teams working on areas such as custom AI chips and quantum computing.
An Amazon spokesperson stated that the company is adjusting its priorities to focus on areas that deliver the most value for customers. “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 told CNBC.
Amazon added that investment will continue in key AI projects. The move comes as Amazon competes with major AI players such as OpenAI, Anthropic and Google. The company has been developing large AI models for several years as part of its broader artificial intelligence strategy.
Last month, Amazon AGI head Peter DeSantis acknowledged that the company’s AI models had not reached the leading edge for the largest and most demanding applications. Amazon is preparing to announce its second-quarter earnings next week. The company has already outlined plans to spend around $200 billion this year on capital investments, with significant spending directed towards expanding AI infrastructure.
Amazon has been cutting jobs across different divisions after expanding its workforce significantly during the pandemic period. Since October, the company has eliminated more than 30,000 positions across teams, according to CNBC. Smaller rounds of workforce reductions have also continued in recent months. The job cuts show the company is restructuring parts of its AI operations while maintaining aggressive investment in the sector.
Amazon’s challenge is to improve its position in the AI race while ensuring resources are directed towards projects with the highest business impact. The coming earnings report may provide further details on how the company plans to balance AI expansion with operational efficiency.
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