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REUTERS/Steve Marcus/File Photo Acquire Licensing RightsNov 17 (Reuters) - Amazon.com (AMZN.O) on Friday announced it is trimming jobs at its Alexa voice assistant unit, citing shifting business priorities and a greater focus on generative artificial intelligence. Many companies are shifting resources to generative AI, which can create software code and lengthy text responses from short prompts. Alexa is a voice assistant that can be used to set timers, ask search queries, play music, or as a home automation hub. In particular, people familiar with the matter pointed to the Alexa voice assistant, now nearly a decade old, as having failed to keep pace in the age of generative artificial intelligence. The Seattle-based online retailer's voice assistant products compete with offerings from Alphabet (GOOGL.O) and Apple (AAPL.O).
Persons: Steve Marcus, Daniel Rausch, Panos Panay, David Limp, Jeff Bezos, Rausch, Greg Bensinger, Kenneth Li, Chizu Nomiyama, Jonathan Oatis Organizations: REUTERS, Alexa, Fire, Reuters, Devices, Microsoft, Amazon, Origin, Echo, Amazon.com, Apple, Thomson Locations: Las Vegas , Nevada, U.S, Panay, Seattle, San Francisco
Limp regularly appeared at Amazon hardware events, which are typically held each fall but sometimes occur more than once a year, to announce new products. Amazon said Limp would remain in his role for the next few months and the company will announce his successor in the coming weeks. Amazon is set to unveil new products at its annual event Sept. 20, hosted at the company's Northern Virginia headquarters, known as HQ2. "It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result." In January, Limp said Amazon remains "fully committed" to the Alexa unit despite the job cuts in the division.
Persons: David Limp, Amazon's, Limp, Andy Jassy, Jassy, , Annie Palmer Organizations: Amazon.com Inc, Amazon, CNBC, Wall Street, Devices, Services Locations: Seattle, Virginia
Andrew Adams, who has led the "KleptoCapture" task force since its inception in March 2022, will be replaced by his deputies Michael Khoo and David Lim, a DOJ spokesperson said. "It was a privilege to cap this time in service of the Department's response to the war in Ukraine," Adams, a 10-year Justice Department veteran, wrote in a LinkedIn post. In launching the task force, U.S. Attorney General Merrick Garland said it would enforce sanctions and export controls designed to freeze Russia out of global markets, and confiscate assets obtained through unlawful conduct. During Adams' tenure, the unit unveiled indictments against aluminum magnate Oleg Deripaska and TV tycoon Konstantin Malofeyev for alleged sanctions busting, and seized yachts belonging to sanctioned oligarchs Suleiman Kerimov and Viktor Vekselberg. Reporting by Luc Cohen in New York; Additional reporting by Sarah N. Lynch in Washingon, D.C.; Editing by Daniel WallisOur Standards: The Thomson Reuters Trust Principles.
Persons: Andrew Adams, Michael Khoo, David Lim, Adams, General Merrick Garland, Oleg Deripaska, Konstantin Malofeyev, Suleiman Kerimov, Viktor Vekselberg, Artem Uss, Khoo, Lim, Luc Cohen, Sarah N, Lynch, Daniel Wallis Organizations: U.S . Department, Reuters, Department of Justice, DOJ, Department, Vekselberg's, Huawei Technologies, Iran, Airbus, D.C, Thomson Locations: Moscow, Ukraine, New York City , New York, U.S, Russia, York, Russian, Italy, New York, Washingon
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Amazon SVP of Devices and Services David LimpDave Limp, Amazon SVP of Devices and Services, joins 'Tech Check' to talk upcoming tech projects coming out of Amazon.
Persons: David Limp Dave Limp Organizations: Amazon SVP, Devices, Services
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailI can't imagine a future where every household doesn't have at least one robot, says Amazon's David LimpDave Limp, Amazon SVP of Devices and Services, joins 'Tech Check' to talk upcoming tech projects coming out of Amazon.
Persons: Amazon's David Limp Dave Limp Organizations: Amazon SVP, Devices, Services
Amazon's CEO Andy Jassy said generative AI like ChatGPT presents "exciting" possibilities. He told the Financial Times that Amazon has been working on generative AI for a long time. Amazon company supporters are worried the company is falling behind in this area, per the FT.Sign up for our newsletter for the latest tech news and scoops — delivered daily to your inbox. "I think it's exciting, what's possible with generative AI," Jassy told the FT. "And it's part of what you're seeing with models like ChatGPT. But most large, deeply technical companies like ours, have been working on these very large, generative AI models themselves for a long time."
The company's devices and services organization, which oversees the development of products such as Alexa, Echo smart speakers and Kindle e-readers, was among the groups affected. Still, Amazon remains "fully committed" to the Alexa unit despite the company taking steps to be more disciplined with costs in "a very uncertain economy," Limp said. At one point, Amazon had 5,000 people working on Alexa and Echo. Amazon has sold devices such as the Echo at or near cost because its goal isn't to make money from them. The prices of some commodities used in Amazon devices, such as memory and displays, has increased, and those could get passed along to consumers, he said.
Amazon is on pace to lose $10 billion this year on some devices, include its voice assistant Alexa. The team working on Alexa was one of the most supported by Jeff Bezos because it was his brainchild. Most of the loss was due to Alexa and other Amazon devices, a person familiar with Worldwide Digital previously told Insider. When Alexa launched in 2014, Amazon wanted to make sales through people using Alexa, not necessarily through people buying the Echo devices that have the Alexa voice assistant. Last week, reports of layoffs at Amazon showed they could primarily affect the team working on Alexa.
Amazon's Alexa and the devices team at large is now the prime target of the biggest layoffs in the company's history, according to press reports and an internal email seen by Insider. Instead, Amazon wanted shoppers to buy more things through Echo devices by placing orders through the voice-assistant. Reports of Alexa mistakenly sending voice recordings to the wrong person or Amazon employees secretly listening to private conversations stoked fear of privacy concerns. But even so, its financial contribution often fell short of expectations, more than half a dozen employees told Insider. Employees told Insider the product is Bezos's latest pet project.
Amazon is laying off some employees in its devices and services unit, hardware chief Dave Limp wrote in a memo to workers on Wednesday. The e-retailer is consolidating some teams and programs in its devices and services unit after "a deep set of reviews" of the business, Limp wrote. "It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result." The job cuts are part of broader layoffs hitting Amazon as it stares down a worsening economic outlook. While the cuts may total 10,000 people, there is no specific target for total job cuts, the person said.
David Limp, senior vice president of devices at Amazon, in 2016. Amazon just wrapped up its fall hardware event where it announced a bunch of new gadgets. The event comes ahead of the busy holiday shopping season and ahead of the company's second Prime Day, known as the Prime Early Access Sale, which will take place on Oct. 11 and 12. Here are the biggest announcements:Check out the full coverage below.
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