Amazon's Alexa Division Faces Major Layoffs Due to Shift Towards Generative AI

10 months ago 16703

Amazon is set to make significant cuts to its Alexa division, with 'several hundred' jobs on the chopping block. The tech giant has cited a shift in priorities towards developing generative AI as the reason for the layoffs. The exact number of employees that will be affected by the decision is still unknown.

The news of the impending job cuts came through an internal memo that was circulated among Amazon employees, a document that has been reviewed by news outlets such as Reuters and GeekWire. According to the memo, Daniel Rausch, the vice president of the Alexa division, expressed the need to realign the division's focus with the company's overarching goals, leading to the decision to pause certain projects.

Employees in the United States and Canada are expected to be the first to receive notifications on Friday, with those in India being informed next week. The process will then expand to include employees in other regions, as outlined by Rausch in the memo.

This latest round of job cuts is not an isolated incident for Amazon. Earlier in the year, CEO Andy Jassy announced a similar move that impacted a significant number of employees, totaling 18,000 individuals. Furthermore, recent reports from Reuters have indicated that Amazon is also looking to downsize its gaming division by cutting 180 jobs.