Amazon Trims Workforce In Alexa Unit Amid AI Pivot
Brands Companies E-commerce & Marketplaces News

Amazon Trims Workforce In Alexa Unit Amid AI Pivot

Amazon Seller Services Net Loss Widens 33% In FY23 has confirmed significant job cuts within its Alexa voice assistant unit. The multinational tech giant revealed on Friday that it is trimming jobs in this sector, impacting “several hundred” employees.

While exact numbers remain undisclosed, the decision is said to align with Amazon’s increased focus on generative artificial intelligence (AI) and the optimisation of resources.

The job cuts are not confined to the Alexa unit alone, as Amazon undertakes a broader restructuring across various divisions. Recent reductions have been witnessed in the music and gaming sectors, along with adjustments in specific human resources roles. The restructuring signals a company-wide realignment, showcasing Amazon’s adaptability to evolving market dynamics.

Daniel Rausch, the Vice President of Alexa and Fire TV, stated in an internal email that the changes are part of an effort to better cater to customer needs. The company aims to channel its efforts more effectively towards generative AI, a technology capable of creating software code and detailed text responses based on concise prompts. Rausch said that these shifts necessitate the discontinuation of certain initiatives within the Alexa unit.

Although the majority of affected roles were within the devices division, a spokesperson clarified to Reuters that a few employees working on Alexa-related products in a different unit were also impacted.

Leave a Reply

%d bloggers like this: