Amazon confirmed plans to cut approximately 100 roles in its Devices and Services division on May 14. 2025. The unit, responsible for products like Kindle e-readers, Echo smart speakers, Alexa voice assistant, and Zoox self-driving cars, described the layoffs as part of regular business reviews to "align teams with product roadmaps and improve operational efficiency." A company spokesperson declined to specify which teams were affected but noted the move aligns with broader cost-cutting efforts, following earlier workforce adjustments in divisions like Alexa and Wondery podcasts.

The announcement comes weeks after Amazon rolled out a major Alexa upgrade powered by generative AI to enhance conversational features. CEO Andy Jassy has prioritized streamlining management layers to reduce bureaucracy. Despite the cuts, Amazon added roughly 4.000 positions globally between Q4 2024 and Q1 2025. Shares closed slightly lower at $210.25 on the day of the announcement.

Amazon’s Devices and Services division has faced repeated restructuring. In 2023. hundreds of Alexa roles were eliminated as the company shifted focus toward AI, scrapping projects like Alexa-enabled carbon monoxide detectors and home energy monitors. Employees have cited uncertainty over new device pipelines as a morale challenge. Amazon reiterated its commitment to the division, calling it a “key investment area” for innovation.