Amazon Decides to Layoff Employees in Its Artificial Intelligence Unit
Amazon has eliminated some positions within its Artificial General Intelligence (AGI) organization, which works on advanced artificial intelligence models. The company did not disclose the number of employees affected by the layoff decision. It was reported that the restructuring was carried out to allocate more resources to artificial intelligence projects considered a priority in terms of customer needs.
Layoff Decision Linked to Customer-Focused Artificial Intelligence Projects
An Amazon spokesperson stated that developing large artificial intelligence models remains among the company’s most important areas of work. The spokesperson said Amazon aims to accelerate development in critical areas by focusing on initiatives that matter most to customers.
In its statement, the company noted that this focus required layoff decisions, including the elimination of certain roles in specific parts of the AGI organization. Amazon said that despite the layoff process, it would continue investing in areas it considers important for the future of its customers.
Management Structure in the AGI Unit Had Changed
Rohit Prasad, who led Amazon’s AGI efforts, left the company in late 2025. AGI Lab President David Luan also stepped down from his role in February 2026. In December, the company placed the AGI group under a broader organization led by Senior Vice President Peter DeSantis, which also includes chip development and quantum computing teams.
The latest layoff decision came after Amazon eliminated approximately 16,000 positions across the company in January 2026. According to Amazon’s statement, affected employees in the United States will be offered 90 days of pay and benefits, career transition support, temporary health coverage, and severance pay depending on eligibility.
Amazon Continues Its Artificial Intelligence Investments
Amazon said that despite the downsizing of its AGI team, it has not stepped back from its artificial intelligence investments. In June 2026, AWS announced a new $1 billion program for artificial intelligence engineers who will work within companies to help customers develop agentic AI systems.
Under the program, thousands of specialists are expected to work directly with customer teams. In a separate layoff process being carried out at two Amazon warehouse facilities in Florida, the number of affected employees is expected to exceed 1,000 due to facility renovation work.