E-commerce giant Amazon began cutting staff a few weeks ago. In total the company
What is known
Alexa is a losing businessAmazon, despite the fact that the voice assistant has been on the market for about 10 years, and in the US it ranks third in terms of the number of users (71.6 million). Only Siri and Google Assistant have more – 77.6 million and 81.5 million, respectively.
The department responsible for the developmentAlexa is part of the Worldwide Digital group. In the first three months of 2022, the loss was $3 billion. Business Insider reports that in just 2022, Alexa will bring the company a loss of $10 billion.
Former Amazon CEO Jeff Bezos(Jeff Bezos) wanted to monetize the virtual assistant, but over time, the interest of the ex-head of the company in this venture began to fade. New CEO Andy Jassy is also not interested in the project.
As we wrote above, Alexa has 71.6 millionUS users only. In addition, the company logs a billion interactions with voice assistants every week. Even such huge numbers do not allow Amazon to monetize Alexa. This is due to the fact that the vast majority of user requests to a smart assistant come down to a request to turn the music on or off, as well as talk about the weather. Therefore, the sale of Echo portable speakers at almost cost cannot fully justify itself.