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Amazon Lays Off Employees In AGI Division Even As AI Spending Surges
24htopnews | July 23, 2026 5:09 PM CST

Amazon has laid off employees from its Artificial General Intelligence division while continuing to invest heavily in AI. The affected teams reportedly include AI model customisation and post-training groups. The company said it is restructuring to focus on key customer priorities while keeping AI development among its top goals.

Amazon has laid off employees from its artificial general intelligence (AGI) division, even as the company continues to pour billions into expanding its AI business, according to a report by CNBC. The exact number of employees affected, as well as the specific teams within the division that were hit, remains unclear. The move comes as Amazon balances aggressive cost-cutting with an equally aggressive push to compete in the AI race.

AGI division's scope and affected teams

Amazon's AGI division is responsible for developing the company's AI models and also oversees teams working on custom AI chips and quantum computing. Based on LinkedIn posts, some of the employees who lost their jobs were working on AI model customisation and post-training, key stages in refining large language models for specific use cases.

Amazon defends the decision


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