Amazon is restructuring parts of its artificial intelligence division even as it pours an unprecedented $200 billion into data centers and AI hardware over the next several years, according to people familiar with the matter.
The cuts touch a small number of roles within the AI research and product teams, impacting roughly 100 positions, sources said. Affected employees are being offered severance or relocation to other divisions within the company.
The restructuring comes as Amazon competes with Microsoft and Google for dominance in cloud AI services. AWS, Amazon’s cloud arm, has been investing heavily in custom AI chips through its Trainium and Inferentia lines, and the company recently committed to massive data center expansions across the US and Europe.
Amazon’s move mirrors a broader industry pattern where tech giants pour billions into AI infrastructure while simultaneously pruning headcount in adjacent areas to streamline operations.
