Amazon is proceeding with ``business review for cost reduction'' such as device business including Alexa, which has suffered an operating loss of more than 700 billion yen

It is reported that Amazon CEO Andy Jassy is leading a review of cost reductions across Amazon and shrinking businesses that are not profitable. The review of cost reductions has lasted for several months, and in particular, the device business division, including the voice assistant AI Alexa, is generating an annual operating loss of $ 5 billion (about 700 billion yen), and has been closely evaluated. That's it.

Amazon, in Broad Cost-Cutting Review, Weighs Changes at Alexa and Other Unprofitable Units - WSJ
https://www.wsj.com/articles/amazon-has-launched-a-cost-cutting-review-focused-on-unprofitable-business-units-11668094823

Amazon is subjecting Alexa to a performance review - The Verge
https://www.theverge.com/2022/11/10/23451534/amazon-alexa-cost-cutting-review-andy-jassy

Amazon expects growth to slow down during the year-end shopping season in 2022, and is making significant cost savings in logistics and warehouse management. CEO Jassy commented that 'Amazon was encouraged' by efforts to reduce costs in logistics and warehouse management.

Amazon's operating profit has halved for the second consecutive year, the growth of the cloud has slowed down, and the stock price plummeted by 20% due to the forecast that the year-end sales season will struggle - GIGAZINE

by The.Grim.North

However, at the same time Amazon announced that it will acquire iRobot, the manufacturer of the robot vacuum cleaner 'Rumba', for $ 1.7 billion (about 230 billion yen) . In addition, it has announced that it will acquire One Medical, a healthcare provider, for $ 3.9 billion (about 550 billion yen), and while reducing costs, it is expected that the expenditure will be considerably larger. Meanwhile, there are cases where the device division, including Alexa's development division, has an operating loss of more than $ 5 billion, so there is a good chance that management will be greatly affected.

According to an internal document obtained by the Wall Street Journal, an American economic newspaper, ``Amazon is considering whether to focus on trying to add new features to Alexa.'' The internal document seems to be considering Alexa's survival itself, but Amazon is showing support for Alexa.

'In less than a decade, Alexa has been used by millions of customers in different languages and cultures around the world,' Amazon spokesperson Brad Glasser told tech news site The Verge. It's become an AI service with billions of interactions every week, and Alexa interactions have grown by over 30% in 2021. We're still as optimistic about Alexa's future as ever. It continues to be an important business for Amazon and something to invest in.'