Amazon has initiated a new round of job cuts within its Devices and Services division, the unit responsible for popular consumer products like Alexa-enabled devices, Kindle e-readers, Fire TVs, and smart home technology. The move comes as part of a broader strategic realignment aimed at improving efficiency and focusing resources on high-impact projects.

Though Amazon has not disclosed the exact number of positions affected, sources familiar with the matter indicated that the layoffs span multiple teams, including engineering, product development, and support roles. Employees were notified earlier this week, and many are expected to depart the company over the coming weeks.

In a memo sent to staff, David Limp, former Senior Vice President of Devices & Services, described the decision as “difficult but necessary,” emphasizing that Amazon remains committed to its long-term vision for ambient computing and artificial intelligence. “We are prioritizing efforts that deliver the most value for our customers and the company,” Limp wrote, noting that while innovation remains central to Amazon's strategy, some projects will be scaled back or discontinued entirely.

The restructuring is the latest in a series of cost-cutting measures by the tech giant, which has been under pressure to streamline operations following slower-than-expected growth in several sectors. Over the past two years, Amazon has made significant cuts across its corporate workforce, affecting more than 27,000 positions since early 2023.

Analysts say the Devices and Services division, despite being home to Amazon’s widely recognized Alexa virtual assistant, has struggled to generate sustainable profit margins. Although Alexa remains a top-selling smart assistant globally, the company has faced challenges in monetizing voice interactions at scale.

“Amazon is shifting its focus toward more profitable and scalable innovations,” said Sarah Kim, a senior analyst at TechFuture Research. “This may include a greater emphasis on AI services and cloud-based integration rather than hardware expansion alone.”

The layoffs come as new Amazon CEO Adam Selipsky, who took over following Andy Jassy’s move to Executive Chairman, continues to refocus the company around its core competencies: e-commerce, cloud computing (through AWS), and advertising.

Affected employees will receive severance packages, extended health benefits, and job placement support, according to Amazon’s human resources team.

Despite the cuts, Amazon insists it is not abandoning the consumer device market. In fact, the company plans to continue investing in next-generation technologies such as AI-driven home automation, conversational AI, and integration with third-party smart ecosystems.

“As we fine-tune our approach, we remain deeply committed to delighting customers through innovation,” the internal memo stated.

This restructuring signals a new chapter for Amazon’s Devices and Services unit—one that may see fewer hardware launches, but potentially more refined and revenue-aligned initiatives in the years ahead.