Amazon Cuts Jobs in Artificial General Intelligence Unit

Amazon Cuts Jobs in Artificial General Intelligence Unit

Amazon announced Wednesday that it is reducing headcount within its Artificial General Intelligence (AGI) organization. The move comes as the company reconsiders its AI development endeavors to prioritize high-impact projects over roles deemed less critical.

The company did not disclose the specific number of employees affected by these latest cuts. However, reports from online forums on Wednesday indicate that staff working under Vishal Sharma, vice president of AGI information, and Adeeb Shanaa, vice president of artificial general intelligence data services, were impacted.

The AGI unit is tasked with developing AI systems capable of performing a wide array of cognitive tasks at or beyond human levels. This includes the development of large AI models and autonomous agents, such as Amazon Nova Act, which allows companies to build systems that perform basic online chores and explore websites.

"We've been building large AI models for several years, and it remains one of the most important things we're working on,"

Amazon spokesperson, via Reuters

The spokesperson further stated that because the field is a fast-moving space, the company is sharpening its focus on initiatives that matter most for customers. This strategic shift led to some difficult decisions, including the elimination of roles within parts of the AGI organization.

Leadership Shifts and Restructuring

The layoffs follow a period of significant leadership turnover and reorganization within Amazon's AI efforts. Rohit Prasad, who previously oversaw AGI, departed the company at the end of last year. David Luan, the head of the AGI Lab, exited in February.

In December 2025, the company consolidated AGI work under Senior Vice President Peter DeSantis. This broader technology group now encompasses AGI alongside silicon engineering and quantum computing teams.

These changes are part of a larger effort to balance long-term AI investments with operating discipline. While cutting roles in the AGI unit, Amazon continues to invest heavily in AI infrastructure, including a commitment of approximately $200 billion in capital expenditures. The company is currently expanding its Nova family of foundation models and integrating generative AI services across its devices, retail, and Amazon Web Services (AWS) businesses.

Broad Workforce Reductions

The AGI cuts are the latest in a series of workforce reductions. In January, Amazon eliminated about 16,000 corporate positions globally to reduce bureaucracy and management layers. This follows a larger trend of corporate streamlining that began in October 2025; total layoffs since that time have reached roughly 30,000 positions.

While these cuts represent a small fraction of Amazon's 1.58 million total employees—the majority of whom work in fulfillment centers and warehouses—they account for nearly 10 percent of the company's corporate staff. This represents the largest workforce reduction in the company's 30-year history, surpassing the roughly 27,000 jobs cut between late 2022 and early 2023.

Amazon stated that affected employees in the U.S. Will receive:

• 90 days of pay and benefits
• Transitional healthcare benefits
• Outplacement support
• Eligibility for severance payments

The industry-wide trend involves technology firms simultaneously pouring billions into AI infrastructure while reducing headcount in areas where automation and organizational streamlining are expected to increase efficiency. Investors are now monitoring whether Amazon's sharper focus will accelerate the development of AI products while protecting margins and controlling costs.