Alexa is turning into Amazon’s biggest problem to this date
Alexa will lose Amazon $10bn by the end of the year
In the first quarter of 2022, Worldwide Digital, an Amazon division that includes the Alexa voice assistant, Echo smart speakers, and the Prime Video streaming service, lost $3 billion in the first quarter of 2022. According to estimates, it is Alexa that will bring the corporation the most financial losses at the end of the year – $10 billion.
Among all voice assistants, Alexa is the third most popular voice assistant, surpassed only by Siri and Google Assistant. According to employees of the corporation, who themselves were involved in the development of Alexa, the project turned into a ‘colossal failure’ and ‘lost opportunities.’
Alexa and Echo began to make losses back in 2018 (then the corporation lost $5 billion). After that, Amazon froze the hiring of new employees, and is now preparing to lay off approximately 10,000 people. Most of all, the cuts will affect the division that develops Alexa.
Since the beginning of the year, Amazon shares have fallen in price by about 50%. The corporation became the first publicly traded company in the world to lose $1 trillion in market capitalisation.
