Amazon cuts roles in AGI unit as AI spending accelerates

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Amazon AGI job cuts & AI spending

Highlights

Amazon is cutting roles in its AGI unit to prioritize high-impact AI initiatives but has not disclosed the number of affected employees or teams.
Amazon forecasts $200 billion in 2024 capital expenditures, up over 50% from 2025, as it raises tens of billions in debt to support AI infrastructure.
The AGI restructuring and continued layoffs reflect pressure to improve generative AI competitiveness, especially after the February departure of AGI lab leader David Luan.

AGI restructuring as quarterly results near

As first reported by CNBC, Amazon confirmed on Wednesday that it is eliminating some roles within parts of its AGI organization, though it is not disclosing how many employees are affected or which teams are included in the cuts.

The company says the move reflects a sharper focus on customer priorities in a fast-moving market. In a statement to CNBC, an Amazon spokesperson says the company is making difficult decisions in some areas of the AGI unit even as it continues to invest in initiatives it sees as most important for customers’ future.

The AGI group is responsible for building AI models and also includes teams working on silicon development and quantum computing. In 2024, the unit released Amazon’s Nova family of foundation models, and it remains a central part of the company’s broader AI strategy.

Amazon is scheduled to report second-quarter results next week. The company has forecast capital expenditures of $200 billion for the year, up more than 50% from 2025, and is raising tens of billions of dollars in debt to support its AI infrastructure buildout.

Pressure on AI competitiveness and cost discipline

Amazon has been reducing its workforce for several years after a pandemic-era hiring surge, and it has eliminated more than 30,000 jobs since last October, with additional smaller rounds continuing in recent months.

The layoffs come as Amazon works to improve its position in generative AI against competitors seen as further ahead in the field. The company’s AGI ambitions face added pressure after David Luan, who led Amazon’s AGI lab, left in February after joining through the acquihire of startup Adept.

Last month, DeSantis told CNBC that Amazon’s models have not been at the very frontier for the largest and most demanding workloads. He says the company is working to strengthen those models further and hopes to deliver one of the most capable intelligent models in the market.

In our earlier article on Tesla’s upcoming Q2 earnings, we outlined how investors were weighing delivery momentum and expected revenue growth against ongoing uncertainty around the company’s robotaxi and robotics plans. We also noted that, with large-cap names in focus, guidance and any earnings surprises can influence broader market sentiment—especially as AI-related bets face closer scrutiny.

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