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  • November 25, 2023
  • Hiba Moideen
Amazon Axes Hundreds of Jobs in Alexa Division to Boost AI Focus

In a strategic move to bolster its emphasis on artificial intelligence (AI), Amazon has initiated widespread job cuts within its Alexa division. The decision was communicated to employees in a note issued by Daniel Rausch, the Vice President of Alexa and Fire TV at Amazon. Rausch highlighted the company's commitment to aligning efforts with core business priorities and customer-centric initiatives, emphasizing the optimization of resources for generative AI.

Rausch acknowledged the elimination of "several hundred" positions but refrained from providing a specific numerical figure. The restructuring, he explained, is a response to the abandonment of certain initiatives as part of Amazon's continuous innovation efforts. The impact of these job cuts extends to employees in the United States, Canada, and India.

Amazon, headquartered in Seattle, finds itself engaged in intense competition with other tech giants aiming to capitalize on the growing trend of generative AI. Over the past few months, the company has actively integrated AI into various aspects of its operations, from incorporating the technology into customer reviews to offering services that empower developers to construct their own AI tools using Amazon Web Services (AWS) cloud infrastructure.

This move follows recent layoffs within Amazon's gaming and music teams and contributes to the workforce reduction strategy initiated last year and earlier this year, which affected 27,000 employees across the company. Notably, Amazon's Alexa unit had also experienced repercussions from those previous job cuts.

The restructuring aligns with Amazon's broader vision of staying at the forefront of AI innovation, as demonstrated by the September unveiling of an Alexa update featuring enhanced generative AI features.