Amazon reorganizes Alexa division and lays off hundreds as it transitions to Generative AI technology.

Tech

Amazon Cuts Hundreds of Jobs in Alexa Division
Amazon is set to lay off employees in its Alexa division, affecting several hundred individuals across the US, Canada, and India. The decision reflects a strategic shift by Amazon to align its efforts with the company’s business priorities, emphasizing generative AI.

Daniel Bausch, Amazon’s vice president of Alexa and Fire TV, communicated the layoffs, highlighting the company’s focus on generative AI and maximizing resources to meet customer needs. Despite the decision involving discontinuing some initiatives, Amazon remains committed to investing in Alexa and assisting affected employees in finding alternative roles within the company.

This follows significant workforce reductions initiated by Amazon over the past year, surpassing 27,000 layoffs across various divisions. The recent round of cutbacks also saw the gaming division affected, with 180 job eliminations and the closure of Crown, a Twitch channel backed by the company.

As the field of generative AI continues to advance rapidly, Amazon is feeling the need to stay competitive. The company plans to enhance Alexa to align it more closely with OpenAI’s ChatGPT, introducing upgrades to enable users to issue intricate commands and engage in longer interactions with the digital assistant.

Amazon’s layoffs in its Alexa division indicate a strategic shift for the company as it adapts to the evolving landscape of AI and customer expectations. Despite the layoffs, the company is committed to its vision for Alexa and the future of AI, emphasizing a focus on generative AI and realigning efforts to match business priorities.