Amazon is taking a slice out of its most unprofitable business - Alexa.
👉 Background: In 2020 and 2021, Amazon and its investors were laughing all the way to the BANK.
But FY 2022 was a bit of a different story. We're talking a net loss of $3 billion USD.
👉 What happened: So now, Amazon is taking a slice out of its most unprofitable businesses. Enter Alexa - Amazon’s cloud-based voice service with over 100m devices sold and an operating loss of more than $5 billion a year. Yikes.
👉 What else: While Alexa will still stay alive, it won’t get the same love and investment that it has received in the past as the Zon becomes laser-focused on profits.
💡In times of economic uncertainty, it’s time to batten down the hatches… and Amazon knows this all too well.
💡It’s interesting because Amazon is known for its exceptional customer service and going above and beyond for customers. As Jeff Bezos said: “start with what the customer needs and work backwards”.
💡Now, Amazon has supposedly put an emphasis on finding ways to save money at its warehouses and find extra room on their delivery trucks. Very un-Amazon-esque?
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