Amazon AGI layoffs hit Nova team as AI focus shifts

Amazon has cut roles in the AGI group behind its Nova artificial intelligence models as it redirects more AI work towards products for business customers, according to GeekWire and CNBC.

The company has not said how many employees were affected.

The cuts are not being presented as a retreat from AI spending. Amazon is still putting large sums into models, chips and data-centre infrastructure, but the reports suggest a tighter test for what gets priority: can the work be sold, supported or packaged through Amazon Web Services? That is a commercial filter, not just a cost-cutting one.

GeekWire reported that Amazon confirmed the layoffs as it sharpened its focus on customer-facing initiatives. CNBC said the affected organisation includes the Nova foundation models, Trainium and Inferentia chips, the Bedrock AI platform and the company’s quantum work. Amazon has not disclosed the size of the reduction, and digitalblog has not independently verified the headcount.

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 organization.
Amazon spokesperson, Reuters / The Star

The wording is careful. It puts customers first, then speed, then the job cuts.

Peter DeSantis, the senior vice president now leading the broader AGI organisation, told CNBC earlier this year that Amazon’s models had not been at the frontier for the largest and most demanding workloads. The remark was unusually blunt, and it helps explain why Amazon may be leaning harder on distribution, integration and price while it keeps chasing stronger models.

GeekWire also reported that Amazon recently launched a $1 billion initiative to embed AWS engineers with customers building agentic AI systems. CNBC reported that Amazon expects about $200 billion in capital expenditure this year. The two figures sit awkwardly beside a layoff notice, but together they show where Amazon is still willing to spend.

There is a leadership change behind the cuts as well. Former AGI chief Rohit Prasad left at the end of 2025, and the unit was folded into a wider structure under DeSantis. The layoffs now look like another stage in that reset: fewer roles in some parts of the AGI group, with more attention on projects that can land in customer accounts.

Why it matters for AWS customers

For AWS customers, the signal is how Amazon wants its AI work measured. OpenAI, Anthropic and Google still compete for attention through model launches, benchmark results and developer mindshare. Amazon’s stronger hand is different. It can package models, chips and tooling into services enterprises already buy through AWS, then sell support around them.

The cuts also fit a wider pattern inside Amazon. Reuters, via The Star, noted that the company cut 16,000 jobs across the wider business in January, while GeekWire said affected US employees in the AGI unit would receive 90 days of pay and benefits. The difference here is the rationale Amazon is willing to put on the record: it wants AI work that moves faster for customers and can point to a clearer return.