Home » US business news » Amazon boss Andy Jassy to lead cost-cutting review with Alexa business getting close scrutiny
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An extensive cost-cutting exercise will be carried out at Amazon, including a close look at its Alexa business.
The Wall Street Journal reports Amazon chief executive Andy Jassy is leading the review, which will focus on the various businesses the company runs.
Sources say the Alexa business will be closely scrutinized.
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Alexa has more than 10,000 employees and is a major cost for the company.
Documents seen by the Wall Street Journal are said to show the Amazon Devices Unit, which includes Alexa, has an operational loss of more than $5 billion a year.
A decision needs to be made over whether Amazon should add new features to Alexa, which would require more cash.
The difficulty is that a lot of people only use a few of Alexa's functions.
Amazon has also told employees in other unprofitable divisions they need to find jobs elsewhere in the company, as their teams had been suspended or closed.
An Amazon spokesman said: "Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review.
"Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review.
“As part of this year’s review, we’re of course taking into account the current macro-environment and considering opportunities to optimize costs.”
He added Amazon is “as optimistic about Alexa’s future today as we’ve ever been, and it remains an important business and area of investment for Amazon.”
Amazon is the latest to look at its operating costs, following the shock announcement from Facebook owner Meta that it will cut a massive 11,000 jobs.
Amazon expanded enormously during the Covid-19 pandemic, adding 800,000 new jobs.
During that period it spent about $10 billion on various acquisitions including a movie-and-television studio.
Money is still be spent on areas where the company sees growth potential, like healthcare .
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