Amazon.com Inc (NASDAQ:AMZN) has begun laying off hundreds of employees in its Alexa division as part of a larger cost-saving effort, the company said Friday.
Amazon VP of Alexa and Fire TV Daniel Rausch sent a memo to staffers informing them of the cuts, according to reporting at GeekWire.
“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 wrote. “These shifts are leading us to discontinue some initiatives, which is resulting in several hundred roles being eliminated.”
Amazon didn’t clarify which Alexa initiatives and jobs were being cut.
The ecommerce giant has working to cut costs across the board in 2023 as it faces an environment of reduced consumer spending. Already this year, Amazon has eliminated more than 27,000 positions.
Alexa may find itself on shakier ground given the popularity of other AI tools, such as ChatGPT. That said, Rausch said Amazon remains “encouraged by the progress we’re making with Alexa,” noting that there are more than 500 million Alexa devices in users’ homes.
Meanwhile, Amazon has told its corporate employees that they may not be promoted if they do not return to the office.
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