Amazon AI workforce cuts

Amazon’s AI‑related workforce reductions continued in late July 2026. On July 22 the company cut staff in the Artificial General Intelligence (AGI) division, targeting teams led by Vice Presidents Adeeb Shanaa and Vishal Sharma. Two days later Amazon announced the closure of its San Francisco‑based AGI Lab, which had operated for only 18 months and employed several dozen researchers. The lab shutdown is part of the same restructuring that eliminated additional roles across the AGI organization.

Amazon framed the moves as a “sharpened focus” on AI projects that matter most to customers while keeping large‑scale model development a priority. The company’s 2026 AI budget has risen to roughly $200 billion—more than 50 % above the prior year—and is partially financed through debt. Development of enterprise‑focused models such as Amazon Nova and Amazon Titan continues under the oversight of Peter DeSantis, who also leads the firm’s chip and quantum initiatives.

U.S. employees affected by both the July 22 layoffs and the lab closure receive 90 days of pay and benefits, outplacement assistance and eligibility for severance. The cuts follow senior‑leadership departures, including Rohit Prasad (late 2024) and David Luan (February 2026). Since the October 2025 wave, total Amazon layoffs total roughly 30,000 positions.