Amazon Cuts AI Jobs Amid Record AI Infrastructure Spending
Amazon confirmed on July 22, 2026, that it eliminated positions within its Artificial General Intelligence (AGI) division, affecting workers in model customization, post-training, and data services. The exact number of layoffs was not disclosed. This round extends a broader restructuring that has removed roughly 30,000 roles since late 2025, including 16,000 corporate cuts in January 2026. Affected U.S. employees will receive 90 days of pay, benefits, outplacement support, and severance. The layoffs follow leadership turnover, including the departure of AGI head Rohit Prasad and David Luan. Despite the cuts, Amazon insists AI remains a top priority, guiding for $200 billion in capital expenditures in 2026—over 50% higher than 2025—and raising debt to fund AI infrastructure. The AWS backlog stands at $364 billion, and the Trainium chip business has surpassed a $20 billion annual revenue run rate. Wall Street remains bullish, with a consensus Strong Buy rating and a mean price target of $315, implying nearly 30% upside. Amazon reports Q2 results on July 30.
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