Amazon Restructures Devices Unit To Focus on AI and Efficiency

Amazon has laid off around 100 employees from its Devices and Services division as part of a strategic effort to streamline operations and realign priorities. The move, described by the company as a routine business review, reflects CEO Andy Jassy’s ongoing push to improve operational efficiency while doubling down on growth areas like AI.

The affected division oversees Amazon’s flagship consumer tech products, including Kindle, Echo, Alexa, Ring, Fire TV, and newer ventures such as Zoox autonomous vehicles. While the number of jobs cut is small in proportion to the overall workforce, it marks the latest adjustment in a division long known for innovation—but also under financial scrutiny.

The layoffs follow a major update to Alexa, which now features generative AI to enable more natural, proactive interactions. Despite the upgrade, the Alexa team has seen repeated restructuring since 2022. Company-wide, Amazon has trimmed over 27,000 roles since early 2022, even as it continues to invest in high-growth segments. Between Q4 2024 and Q1 2025, Amazon added roughly 4,000 roles in AI, logistics, and cloud computing.

Kristy Schmidt, an Amazon spokesperson, stated that the decision was made to better align resources with the company’s evolving product roadmap. She assured that affected employees are being supported with severance, benefits, and job placement services.

Under Jassy, Amazon is pursuing a leaner management structure—aiming to boost the ratio of individual contributors to managers by 15%. A new internal initiative, “No Bureaucracy,” has already led to over 375 process improvements based on employee feedback.

Amazon’s move follows similar workforce changes across the tech industry. Companies like Google, Meta, and Microsoft have also trimmed roles in 2025 to shift focus toward automation and AI innovation.

Amazon continues to invest in next-gen technologies, including its Project Kuiper satellite network and Zoox’s self-driving platform. However, projects like Zoox have faced hurdles, including a recent software-related recall after a crash, underscoring the challenges of cutting-edge R&D.

Financial markets responded calmly, with Amazon’s stock closing down less than 1% at $210.25 on the day of the announcement. The company’s Q1 2025 earnings reflected strong performance driven by AWS and other high-margin business segments, despite broader economic uncertainties.

While Amazon hasn’t disclosed which specific teams were affected, the timing—shortly after Alexa’s AI overhaul—suggests a realignment away from slower-growth or experimental areas toward scalable, AI-led innovation.

In summary, Amazon’s job cuts signal a strategic pivot: trimming redundancies while investing in technologies that promise long-term growth. As the tech landscape shifts, Amazon is positioning itself to lead by integrating lean operations with smarter, AI-driven systems.