The digital voice assistant of Amazon i.e., Alexa is seemed to be doomed. For the past few years, the tech is facing losses. Though, the company tried hard to recover the tech by investing huge amounts. As the losses mount, the company now appears to get rid of the digital assistant.
As per the report by Business Insider, the ‘worldwide Digital’ group of Amazon faced an operating loss of around $3 billion in the Qi of the following year. The group estimates a loss of about $10 billion in the year 2022. This amount is double the annual loss of $5 billion in 2018. Various products like Prime Video Streaming service, Echo smart speakers, and Alexa were reviewed by the Worldwide Digital group. The major losses refer to Alexa. It appears that Amazon can no longer take the losses owing to the poor performance of its digital assistant.
The product has been subjected to a cost-cutting review. Thus, limiting the development and thereby pulling the investments. Furthermore, the company is reportedly laying off a huge number of employees. A huge percentage of laid-off employees refer to the Alexa division.
For an overview of the current situation, Business Insider investigated a number of current as well as former employees of the hardware division of Amazon. As per the investigated employees, the digital assistant Alexa is a colossal failure of imagination. They mentioned that the opportunity was wasted. Since people utilize it for trivial tasks such as checking the weather or playing any video or music.
Perhaps this is the reason that Google is also struggling with its digital assistant. After the said concerns, Google has also decided to cut down its investment in Google Assistant. Though, the popularity of Android indicates that Google Assistant still has a huge user base globally. Well, we can’t say the same for Alexa. It seems like Amazon has a new product to take care of i.e., in the form of the healthcare business. Given this, the company attained One Medical for $3.9 billion a few months earlier.
David Limp, Amazon’s senior vice president for devices and services, suggests that Alexa still holds a future. As per his remarks, the company is hopeful for both Alexa and Echo. The company has decided to keep up its investment in the two products. He added in a statement that wait and watch policy will be employed to find out what is next in the retail giant’s digital assistant.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.