Amazon lays off 250 employees in devices unit amid AI push
The job cuts mainly affect software development roles and come as Amazon urges engineers to embrace AI and expands its lineup of Alexa-powered devices
Amazon has laid off 250 employees in its devices unit, which makes products such as Kindle e-readers and Echo smart speakers. The cuts follow an engineering memo the company circulated urging developers to learn AI or risk falling behind.
Software development roles hit
The job losses mainly affect software development roles. Reuters reported that employees were informed through emails and text messages sent early Wednesday (October 28). One email cited in the report came from Amazon Vice President Cherie Robinson, who said the company had conducted “a thorough review of our structure,” which led to the decision to cut jobs.
Also Read: Amazon cuts fewer than 1,000 jobs across retail operations in India, US and UK
Amazon confirmed the layoffs but did not disclose the number of employees affected. "We've made the difficult decision to eliminate a small number of roles," a company spokesperson said. The spokesperson further stated that the cuts would help Amazon “operate more efficiently and better align with our product roadmap,” reported India Today.
Engineering memo urges developers to learn AI
The engineering memo, published on Tuesday (October 27), set out the company's expectations for developers as AI becomes more common in software work.
“We all need to embrace this change and take the time to learn, or we risk being left behind,” the memo said, adding that AI would be central to software engineering practices.
Job cuts coincide with new Alexa device launches
The layoffs came on the same day Amazon unveiled five new Alexa-powered devices. The launches included a redesigned Echo Show 16 smart display, an Alexa Photo Frame and the Echo Time bedside clock. All fall under the company's devices business, where the latest job cuts took place.
Also Read: Amazon plans second round of layoffs as part of 30,000 job cuts
Amazon has announced several rounds of workforce reductions over the past year. Earlier this month, it cut about 1,000 jobs in its core retail division. In January, the company announced 16,000 job cuts, following the elimination of 14,000 positions in October last year.
Amazon ramps up AI spending
The job reductions come as Amazon prepares to spend heavily on artificial intelligence. The company is expected to invest as much as USD 220 billion in AI this year.
Also Read: Amazon cuts 16,000 jobs, to focus on generative AI
Other technology companies are also reducing their workforces. Layoffs.fyi estimates that more than 135,000 tech jobs have been cut this year. Dropbox recently announced plans to reduce its global workforce by 9%.
Microsoft, meanwhile, has offered voluntary exit options to roughly 60,000 employees, or one in four of its total workforce.