Amazon’s hardware division, Lab126, responsible for devices like the Kindle and Echo, is reportedly facing challenges that have led to lowered morale. Mass layoffs, key executive departures, and a pipeline of underwhelming devices in development have all contributed to the division’s struggles. Anonymous current and former employees revealed that Lab126 has been working on various new devices, including a carbon monoxide detector, a household energy consumption monitor, a home projector, a digital measuring device, and a virus-testing device. However, many of these devices have faced financial or market concerns and some projects have been canceled.
Amazon hopes to revitalize interest in its Alexa voice assistant, which faces competition from AI chatbots like Google and Microsoft-backed OpenAI’s ChatGPT. The company has plans to unveil refreshed versions of existing products at an upcoming launch event but has not disclosed its full agenda. Overall, Lab126’s losses and shifting strategies have contributed to a decline in morale, with employees highlighting poorly selling devices and a lack of consistent profitability for Alexa. The division’s leader, Dave Limp, plans to step down later this year, and his successor is expected to be Panos Panay from Microsoft.