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Amazon Decides to Layoff Employees in Its Artificial Intelligence Unit

Amazon layoff

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.

AI Earthquake at Oracle: Thousands of Employees Are Being Laid Off

Oracle

US-based technology giant Oracle is preparing to part ways with thousands of employees while accelerating its artificial intelligence investments. The company’s new wave of layoffs launched on a global scale stands out as one of the most striking examples of the growing “AI-focused restructuring” trend in the technology sector.

According to sources close to the matter, although Oracle has not yet made an official announcement, it has started a downsizing process affecting thousands of employees worldwide. It is stated that the company, which had approximately 162,000 employees as of 2025, took this step in order to optimize costs and redirect resources.

Oracle’s Layoffs Could Reach 30,000 People

According to some analyses, if the layoffs reach between 20,000 and 30,000 people, the company could achieve an increase of between $8 billion and $10 billion in free cash flow. This shows that Oracle aims to strengthen its financial structure.

This decision by Oracle is directly linked to its major investments in artificial intelligence infrastructure. The company is expanding capacity to support artificial intelligence workloads, especially by increasing GPU- and CPU-based data center investments.

Oracle’s recent announcement of a $50 billion debt and equity financing plan reveals the scale of the investment. In addition, following the company’s agreement with OpenAI worth more than $300 billion, its total remaining performance obligations reached $455 billion.

Stock Pressure and Competition Were Influential

The company’s stock performance was also an important trigger in this process. While Oracle shares lost approximately 25% of their value during 2026, investors are voicing concerns about the company’s rising debt load and declining cash flow. At the same time, Oracle, which competes with giants such as Amazon, Microsoft, and Google in the field of generative artificial intelligence, is pursuing an aggressive investment strategy in order not to fall behind in this race.

Industry Players Focused on Restructuring for AI

Oracle is not alone. Recently, technology giants such as Meta, Amazon, and Atlassian have also made similar layoffs and redirected their resources toward artificial intelligence investments. According to experts, this shows that companies have entered a transformation process toward “AI-first organizations.”

Analysts emphasize that these layoffs do not mean that artificial intelligence is directly replacing employees, but rather that companies are restructuring costs in order to invest in future growth areas.

The Long-Term Goal Is to Increase AI Revenues

Oracle management, however, believes that the investments made will pay off in the long term. The company states that demand for artificial intelligence infrastructure exceeds supply and that there is strong growth potential in this area. All these developments reveal that the balance in the technology sector is changing rapidly and that companies are now reshaping their growth strategies around artificial intelligence.

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