Amazon Laid Off Employees In Its AI Unit. Its Stock Is Falling

Amazon laid off employees in its artificial intelligence unit even as it continues to spend heavily into the technology, according to a new report.

CNBC noted that the company declined to say how many people were impacted by the decision or which parts of the company, with a spokesperson telling the outlet that "this is a fast-moving space, and 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, even as we continue to invest in the areas most important to our customers' future," the spokesperson added. The company's stock fell 2% at 2:03 p.m. It has dropped more than 5% over the past five days.

The outlet recalled that Amazon has laid off more than 30,000 people since October, conducting different rounds of layoffs in the past months.

It has, however, continued to invest heavily in AI in the meantime. The company has also raised tens of billions recently, with a significant portion of it going to continue building its AI infrastructure.

The company projected that its capital expenditures will reach $200 billion this year, about 50% more than the year prior. Most of it is going toward data centers and chips. CEO Andy Jassy has told investors that AI is a "once-in-a-lifetime opportunity" that needs large investments.