Amazon, a United States-based e-commerce and technology company, is placing a significant emphasis on artificial intelligence (AI) by restructuring its voice assistant division, Alexa, leading to the elimination of numerous positions.
In a message addressed to employees on Friday, Daniel Rausch, the Vice President of Amazon overseeing Alexa and Fire TV, highlighted the company’s strategic shift towards prioritizing customer-centric AI initiatives. Rausch mentioned, “As we strive for innovation, we are realigning our efforts to focus on what truly matters to our customers, optimizing our resources towards advanced AI technologies.”
While the restructuring impacts employees in the US, Canada, and India, Rausch indicated that “some hundred” positions would be affected by these changes.
Furthermore, Amazon recently announced plans to reduce its workforce by more than 180 positions within the Amazon Games division, along with the closure of certain departments responsible for streaming services and third-party game development.
Under the leadership of CEO Andy Jassy, Amazon has downsized its workforce by approximately 27,000 employees since last year as part of a cost-cutting initiative.
The tech industry, among others, has witnessed a wave of layoffs attributed to revenue declines, reduced advertising income, and concerns about a potential economic downturn in the United States.
Notable companies such as Alphabet, Google, Reddit, Disney, 3M, Yahoo, Affirm, Zoom, Dell, IBM, Microsoft, Salesforce, and PayPal have also implemented workforce reductions in recent months.
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