Amazon Lays Off Hundreds of Jobs in Alexa Division as Company Shifts Focus to Generative AI
On Friday, Amazon began laying off several hundred jobs in its Alexa division as part of a broader belt-tightening across the company. The job cuts, which have been underway since last year, are a result of Amazon’s shift in focus towards generative artificial intelligence.
Daniel Rausch, Amazon’s vice president of Alexa and Fire TV, sent a note to staffers informing them of the cuts. In the memo, Rausch stated, “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.”
The exact initiatives being discontinued as a result of the move were not specified by Amazon. The company will be reaching out to affected employees in the U.S. and Canada on Friday, with notifications to employees in India and other regions to follow in accordance with local regulations.
This shift in focus comes as Amazon has been in cost-cutting mode since last year, dealing with slowing growth in its core retail business. It has initiated significant layoffs and axed unprofitable initiatives.
The layoffs in the Alexa division mark a significant shift for Amazon, which has made substantial investments in the technology since its launch in 2014. However, the company now faces increasing competition from generative AI and chatbots like OpenAI’s ChatGPT.
Despite the job cuts, Amazon remains encouraged by the progress of Alexa, noting that users interact with the virtual assistant tens of millions of times every hour and there are more than 500 million Alexa devices in consumers’ homes.
The move also comes as Amazon teased updates to Alexa tied to generative AI, such as composing messages on behalf of users, indicating a significant pivot in the company’s approach to AI technology.