Amazon announces 'several hundred' job cuts in Alexa division, cites shift to AI as priority

Amazon.com disclosed on Friday that it is streamlining roles within its Alexa voice assistant unit, citing a strategic shift towards generative artificial intelligence (AI) and evolving business priorities.

The job cuts impact "several hundred" employees working on Alexa, according to an internal memo, as reported by Geek Wire The company has not provided specific figures on the affected workforce. This move is part of a broader restructuring, reflecting Amazon's focus on generative AI and the discontinuation of certain initiatives.

Daniel Rausch, Vice President of Alexa and Fire TV, stated in the memo, "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. These shifts are leading us to discontinue some initiatives."

This restructuring extends beyond Alexa, with recent cutbacks observed in Amazon's music and gaming divisions, along with adjustments in human resources roles. The company aims to adapt to the rapidly evolving field of generative AI, where competitors like OpenAI's ChatGPT are making strides in advanced natural language conversations.

Amazon had previously conducted layoffs in its Devices & Services division last year amid reports of significant losses. As part of ongoing changes, Dave Limp, the executive leading the Devices & Services division, stepped down in August, with former Microsoft executive Panos Panay named as his successor in September.