The idea of a loss leader, a low or negative profit product that brings you in so that you’ll buy more products, has been around for a while. Amazon’s Alexa has been one of those products for a long time. The latest news from Amazon, however, is that they are losing so much, that the latest layoffs at Amazon were hardest in the Alexa division. Further, Alexa is now the third place product in voice assistants, behind Google and Siri, though both are bolstered by phone usage. Google has also expressed concerns, so the idea of the voice assistant may be faltering soon. That saddens me, as the tech will be needed to take us to a new home automation level.
Layoffs reportedly hit the Alexa team hard as the company’s biggest money loser.