Amazon job cuts will continue to 2023, says CEO

Amazon announced job cuts at the company last week, with management saying it had decided to consolidate some teams and programs after an evaluation.

The e-commerce giant declined to reveal the exact number of employees it was laid off, but previous reports estimated the move would affect around 10,000 or 3% of its global workforce.

On Wednesday, Dave Limp, SVP of Devices & Services, informed employees that his department would be making cuts.

Andy Jassy said the layoffs on Friday were a result of “challenging” economic conditions and rapid hiring in recent years.

“We are reviewing our annual operating plan where we take a look at each business and make decisions about what we think needs to change.

“Leaders across the company work with their teams, look at staff levels, investments they want to make in the future, and prioritize the most important for customers and the long-term health of the business. This year’s review is more challenging. has hired quickly over the past few years.”

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Jassy said the annual planning process will continue into the new year.

Executives have yet to determine exactly how many additional jobs will be affected, but Jassy hinted that there will be job cuts in the Stores and PXT groups, and each leader will notify individual teams as details are worked out.

“Alexa, bring the ax”

Amazon’s third-quarter results improved from the previous quarter, but overall profits fell short of expectations. As a result, Amazon was already cutting jobs in several areas before it even announced its recent layoffs.

Reportedly, Amazon’s Alexa and its entire device team are now a prime target for the largest layoff in the company’s history.

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business insider He said he spoke to more than a dozen current and former employees of the hardware team who claimed the department was in jeopardy.

Amazon’s personal virtual assistant, Alexa, has been available to customers since 2013.

Alexa is compatible with many Amazon devices including the Amazon Echo, Amazon Echo Studio, Amazon Echo Flex, Amazon Echo Buds, Amazon Echo Frames, and Amazon Echo Loops.

Once one of the company’s fastest-growing projects, recent developments (such as widening losses and cutting key staff) show how quickly voice assistants and Amazon’s larger hardware business have fallen on difficult times.

As one former employee put it, “Alexa is a colossal failure of the imagination.” “It was a wasted opportunity.”

According to internal data obtained from insiderAmazon’s Worldwide Digital division, which covers everything from Alexa voice services and Echo smart speakers to its Prime Video streaming service, experienced an operating loss of nearly $3 billion during the first quarter of 2022.

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A source familiar with the department said the overwhelming part of the company’s losses could be attributed to other devices, not just Alexa.

staff said insider Over the past few years, the team has felt like it’s deadlocked due to low morale, failed monetization efforts, and a lack of engagement between customers and engineers.

Alexa also couldn’t compete as Google and Apple increased their investments in voice control technology.

According to insider Intellect, Google Assistant currently has 81.5 million users in the US, Apple Siri has 77.6 million. Alexa is behind with 71.6 million users.


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