When Amazon was forced to cull over 10,000 staffers, they hit the Devices and Services group first. Despite this, the company’s devices chief said the company is still committed to the Alexa ecosystem.
In an interview Tuesday, Senior Vice President Dave Limp called the mass cuts “a painful event and not one you ever want to do” but denied it was a sign of decreased commitment to the smart home system.
“Is there some lack of commitment to Amazon’s devices and services business? By any measure, the answer is no.
Limp said the Devices and Services team still has over 10,000 employees, with the job cuts affecting “well under 2,000 people.”
While Alexa’s user base is growing, with engagement currently at an all-time, the Devices group is still not profitable, with the devices basically sold at cost.
“I think the momentum of monetisation of Alexa is on the right track,” he said.
“The death of any consumer electronics business is when people start putting that device into a drawer. And I can assure you that is not happening with Alexa, Echo or other [technologies] that have Alexa on it.”
