The cuts affect several hundred employees working on Alexa,
according to the email. A spokeswoman declined to elaborate on exactly how many
were affected.
"We're shifting some of our efforts to better align
with our business priorities, and what we know matters most to customers —
which includes maximising our resources and efforts focused on generative
AI," Daniel Rausch, vice president of Alexa and Fire TV, said in the
email. "These shifts are leading us to discontinue some initiatives."
Amazon has been pulling back in a variety of divisions this
month, including in its music and gaming divisions and some human resources
roles.
While most of the jobs affected were in the devices
division, a few were working on Alexa-related products in a different unit, a
spokeswoman said. Many companies are shifting resources to generative AI, which
can create software code and lengthy text responses from short prompts.
Alexa is a voice assistant that can be used to set timers,
ask search queries, play music, or as a home automation hub.
Reuters reported in September that morale in the devices
division had suffered over concerns about what some viewed as a weak product
pipeline. In particular, people familiar with the matter pointed to the Alexa
voice assistant, now nearly a decade old, as having failed to keep pace in the
age of generative artificial intelligence.
Amazon said at the time that "to suggest that a few
anecdotes paint a picture of reality for an organization as large and diverse
as Devices and Services is inaccurate," and that it stood by its products.
Amazon has said its devices and services business is not
profitable, without providing figures.
Only last month the device unit got a new chief, Panos
Panay, who joined the company from Microsoft, replacing David Limp, a 13-year
veteran who is leaving later this year to head Amazon founder Jeff Bezos' Blue
Origin rocket company. Panay had overseen development of the Surface tablet.
Amazon has struggled to generate any profits from Alexa,
which many people use through Echo speakers or video screens. Most efforts to
make money from it have centered on easing purchasing from Amazon.com.
The Seattle-based online retailer's voice assistant products
compete with offerings from Alphabet and Apple.
Amazon has cut more than 27,000 jobs across the company over
the past year, part of a wave of US tech layoffs after the industry hired
heavily people during the pandemic.
The latest cuts come even as Amazon reported third-quarter
net income that far exceeded analyst estimates and forecast revenue in the
year's final quarter roughly in line with expectations. The fourth quarter is
Amazon's most crucial, as it includes holiday shopping.
In the email, Rausch said he remained optimistic about
Alexa.
"Incorporating a new large language model into a
voice-forward, personal AI, has been and continues to be an enormous scientific
and engineering challenge," he wrote, using another term for generative
AI. © Reuters