In 2015, 2015, Amazon was trying to attract consumers in China. Now the Shanghai-based Amazon Web Services announced job layoffs last week as the e-commerce conglomerate shutters its artificial intelligence and development wing in China. File Photo by Stephen Shaver/UPI | License Photo

July 23 (UPI) -- Amazon will shut down its AI research lab in a cost-cutting move as tensions flare with China and as other global companies seek to leave the nation because of Chinese influence.

The Shanghai-based Amazon Web Services announced job layoffs last week while as the conglomerate shutters its artificial intelligence and development wing.

The closures were first reported by The Financial Times.

It was due to "strategic adjustments amid U.S.-China tensions," an applied scientist at the lab, Wang Minjie, wrote on WeChat early this week as Amazon disbanded the team.