Amazon confirmed Wednesday that it laid off an unspecified number of employees in its artificial general intelligence (AGI) organization, the division working on the company’s advanced AI models.

The move, first reported by Reuters, comes as the company invests heavily in programs to help businesses implement AI effectively, including a $1 billion initiative to embed AWS engineers with customers building agentic AI systems.

It’s part of a larger shift in the industry as tech giants and AI frontier labs look to make sure the enormous sums they’re spending on AI pay off in tools businesses actually use.

In a statement, an Amazon spokesperson said building large AI models remains “one of the most important things we’re working on,” but said the company is also “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, even as we continue to invest in the areas most important to our customers’ future,” the spokesperson said.

It’s the latest in a series of changes in Amazon’s AGI group, which despite its name has always been focused more on frontier models than on what the industry considers AGI, the still-theoretical systems that would match or surpass human intelligence.

Rohit Prasad, the senior executive who oversaw Amazon’s AGI work, left the company late last year, and AGI Lab head David Luan departed in February. In December, Amazon folded the AGI group into a larger organization led by senior vice president Peter DeSantis that also includes chip development and quantum computing.

The cuts are the latest in a series of smaller reductions since January, when Amazon eliminated 16,000 jobs across the company. Amazon said U.S. employees whose jobs are cut will receive 90 days of pay and benefits, outplacement support and transitional health coverage, along with eligibility for severance.

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