Amazon Layoffs Result in Hundreds of Jobs Lost in Alexa Division

Amazon layoffs continue as several hundred employees in its Alexa division have been let go unexpectedly. This move forms part of a broader cost-saving initiative that the e-commerce giant has been implementing since last year.

The job cuts were announced by Daniel Rausch, Amazon’s vice president of Alexa and Fire TV, in a note sent to staff members. However, the company did not disclose which specific Alexa projects would be affected by these layoffs. “As we continue to invent, we’re shifting some of our efforts to better align with our business priorities, and what we know matters most to customers — which includes maximizing our resources and efforts focused on generative AI,” Rausch stated in the memo.

The company notified affected employees in the United States and Canada on Friday, while staff members in India will receive notices this week. The schedule for notification in other locations will be determined by local regulations, according to Rausch.

Amazon has already undertaken the largest layoffs in its history over the last year, eliminating more than 27,000 positions, and has discontinued many of its less profitable ventures.

The Alexa technology, launched in 2014, has been a significant investment for Amazon. Former CEO Jeff Bezos, who initially proposed the idea of Alexa, has been a strong proponent of the technology, anticipating that voice interactions would be pivotal in future computer usage. At its peak, Amazon employed about 5,000 staff members dedicated to the development of Alexa and Echo devices.

However, Alexa and similar digital assistants are now confronted with intensifying competition from generative artificial intelligence and chatbots, such as OpenAI’s ChatGPT. In response to these threats, Amazon has hinted at future Alexa updates involving generative AI, such as allowing Alexa to compose messages for users. The division managing Alexa recently welcomed a new leader, Panos Panay, a veteran Microsoft executive who succeeded Dave Limp when he left to join Jeff Bezos’ space venture, Blue Origin.