Amazon’s Alexa, the voice assistant that was introduced in 2014, is part of a devices unit at the company that is expected to lose about $10 billion in 2022, according to Business Insider.
The new report comes as Amazon is cutting roughly 10,000 jobs, with positions already eliminated across the company’s Devices and Books businesses, Amazon CEO Andy Jassy told employees last week.
Alexa is part of Amazon’s “Worldwide Digital” unit, which includes the digital voice assistant, the Echo speaker, and Prime Video. In the first quarter of this year, that unit lost $3 billion, Business Insider reported, citing internal data.
“Alexa is a colossal failure of imagination,” a former employee told the news outlet. “It was a wasted opportunity.”
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Dave Limp, the Senior Vice President of Devices and Services at Amazon, said Tuesday that the company remains confident in its voice assistant.
“We are as committed as ever to Echo and Alexa, and will continue to invest heavily in them,” Limp told Fox Business in a statement.
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Jassy also told employees in a memo last week that Amazon still has “conviction in pursuing” Alexa, as well as Prime Video and other newer initiatives, but the layoffs are necessary because “the economy remains in a challenging spot.”
It’s part of a larger wave of tech layoffs, with Twitter, Facebook, and other companies announcing job cuts in recent weeks.