Amazon reportedly spent more than $10 billion on Alexa in 2022 amid falling sales.
According to a new report, Amazon Alexa has cost Amazon $10 billion in expenses in 2022, with teams working on the smart speaker reportedly set for “mass layoffs” to lower costs.
It’s believed that the world’s largest eCommerce brand will fire around 10,000 employees. Although the jobs will span the length and breadth of the organization, the team responsible for the Echo speaker range, Alexa, and Prime Video is at the most significant risk.
The division, known as Worldwide Digital, cost the firm around $5 billion in 2018, and this year, it’s set to lose $10 billion. Amazon had hoped that loss leaders like the Amazon Echo Dot would encourage consumers to spend more on the Amazon platform by placing orders verbally, but this has not resulted in the sales increases initially hoped.
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