Amazon Announces AI Division Layoffs Amid Ongoing Restructuring
On July 22, Amazon confirmed layoffs within its Artificial General Intelligence (AGI) division, which is responsible for developing large-scale AI models and tools like Nova Act. While the exact number of affected employees was not disclosed, those involved in model customization, post-training, and data services were impacted. U.S.-based employees will receive 90 days of pay, benefits, outplacement support, transitional healthcare coverage, and severance eligibility. This round is part of a broader restructuring that has eliminated approximately 30,000 roles since late 2025, including around 16,000 corporate positions in January 2026. Despite the layoffs, Amazon remains committed to AI development, with plans for $200 billion in capital expenditures this year and significant investments in AWS infrastructure. The AGI team has seen leadership changes over recent months, consolidating under senior vice president Peter DeSantis. Amazon's models are still not at a
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