Amazon considering putting its Alexa business under major cost-cutting review

Amazon’s entire devices unit has an operating loss exceeding $5 billion in the recent years, according to the Wall Street Journal

Amazon is one among the many tech companies that is suffering under the global macroeconomic conditions. The company is now reviewing Alexa, its virtual assistant-driven business as part of a major cost-cutting exercise headed by CEO Andy Jassy. Amazon’s entire devices unit has an operating loss exceeding $5 billion in the recent years, according to the Wall Street Journal. The company is reconsidering Alexa and focusing on adding new capabilities to it. The move comes as Amazon looks to decrease its investments in Alexa-driven products. The company's shares shot up by over 4 per cent on Thursday after the report about the cost-cutting review came out.

Alexa, which gained popularity as a virtual assistant, is an integral part of the lives of many. More than 35 smart speaker models have been discontinued. Although Amazon-branded smart speakers grew 33 per cent during the second quarter in comparison to last year, other brands like Apple and Google decreased by 57 and 31 per cent, respectively, according to global market research firm Omdia.