Slashing AI Talent While Pouring Money into AI? Amazon Cuts AGI Division, Number Affected Undisclosed

Amazon (AMZN-US) cut positions in its Artificial General Intelligence (AGI) division on Wednesday (22nd), marking the latest round of targeted team restructuring following its large-scale layoffs in January. Amazon did not disclose the number of employees affected.

AGI is a theoretical AI concept that refers to systems capable of surpassing human intelligence and autonomously learning, growing, and operating. Currently, several leading AI companies are investing in related research and development, aiming to use such systems in the future to solve more complex problems.

An Amazon spokesperson said the company has been developing large AI models for years, and related work remains one of its most important businesses. However, the AI field is evolving rapidly, and Amazon is further focusing on the projects most critical to customers to accelerate the progress of key initiatives. This strategy has led to difficult decisions, including eliminating some positions within the AGI organization.

In recent years, Amazon has actively expanded its AI product portfolio, not only developing the Nova series of foundational models but also offering generative AI services to customers through Amazon Web Services (AWS), and integrating AI capabilities into its retail and device businesses.

This layoff comes as major tech companies continue to increase spending on AI infrastructure while reconfiguring their workforce. Amazon CEO Jassy is pushing for organizational simplification and accelerated AI investment, and the company announced in January it would cut approximately 16,000 employees.

Amazon's AGI division has also seen recent leadership changes. Rohit Prasad, the senior executive previously overseeing AGI operations, left at the end of last year, and David Luan, head of the AGI lab, departed in February this year. In December last year, Amazon consolidated its AGI work into the division led by Senior Vice President Peter DeSantis, which also includes chip development and quantum computing.

Employee posts on online forums indicate that staff in the AGI data services and information teams were affected, though the full scale of the layoffs remains unconfirmed.

Amazon stated that affected U.S. employees will receive 90 days of pay and benefits, career transition assistance, and transitional healthcare coverage, and will be eligible for severance pay. The company emphasized that despite cutting some positions, it will continue investing in AI and concentrating resources on projects with the greatest potential to impact customers.