Amazon has carried out another round of layoffs as it continues to reshape its workforce in 2026. This time, the layoffs have impacted employees in the company’s Artificial General Intelligence (AGI) division, marking the second major workforce reduction this year. Earlier in January, the e-commerce and cloud giant eliminated more than 16,000 roles across different business units.
While Amazon has not disclosed the exact number of employees affected in the latest round, reports indicate the move is part of a series of targeted layoffs rather than a company-wide reduction. The company said the restructuring is aimed at concentrating resources on its highest-priority artificial intelligence initiatives.
Reuters quoted an Amazon spokesperson, who said, “We’ve been building large AI models for several years, and it remains one of the most important things we’re working on.”
The spokesperson added, “We’re sharpening our focus on the initiatives that matter most for customers, so we can move faster on what counts. That focus means some difficult decisions, including eliminating some roles within parts of our AGI organisation.”
Leadership Overhaul Reshapes Amazon’s AI Strategy
The latest layoffs come after several high-profile leadership changes within Amazon’s AGI business. According to Reuters, Rohit Prasad, one of the company’s senior executives spearheading AGI initiatives, exited Amazon toward the end of last year. In February, David Luan, who headed Amazon’s AGI Lab, also left the company.
The organisational changes began in December when Amazon reorganised its AGI operations under Senior Vice President Peter DeSantis. His responsibilities now extend beyond AGI to include the company’s silicon chip development and quantum computing programmes, reflecting Amazon’s broader push to integrate its advanced technology efforts under a unified leadership structure.
Reports indicate that the latest workforce reduction impacted employees from two AGI teams. The affected groups were overseen by Adeeb Shanaa, Vice President of AGI Data Services, and Vishal Sharma, Vice President of AGI Information.
Amazon’s latest move adds to the growing wave of AI-related restructuring sweeping through the technology sector. As companies increase investments in artificial intelligence, many are simultaneously trimming teams and reallocating resources to projects they consider strategically important.
