![]() Shopper approval declining below rivals.The number of Amazon customers who said they were “extremely” or “very satisfied” with the company in a recent survey has fallen from 88% over a decade ago to 79% in 2022 (although that is an improvement from 65% in 2020), according to investment firm Evercore EVR ISI. Dropping percentage of highly satisfied customers.While it is unclear whether the woes of the Worldwide Digital organization extend throughout Amazon, low employee morale would help explain why customer satisfaction with shoppers is dropping.Īs the Journal reported, here are the customer satisfaction indices that have slipped: This does not bode well for Amazon’s efforts to create a faster-growing future. It was a wasted opportunity.” Other current employees said that over the last few years, the “team was deadlocked” due to “low morale, failed monetization attempts, and lack of engagement across users and developers.” How so? According to BusinessInsider in the first quarter of 2022, Amazon's Worldwide Digital unit - which includes the Echo smart speakers, Alexa and Prime Video - posted “an operating loss of over $3 billion.”Ī former employee told BusinessInsider, “Alexa is a colossal failure of imagination. ![]() Indeed, its devices team - including Alexa - where most of the layoffs happened - has lost billions of dollars due to what looks to me like mismanagement. As CFO Brian Olsavsky told analysts in its third quarter earnings call, “increased foreign currency headwinds, global inflation, fuel prices, and rising energy costs” are all inhibiting Amazon’s growth.īut these external headwinds are not the only thing cutting into Amazon’s success. Macroeconomic factors outside of Amazon’s control are inhibiting demand for its products and services. Last week Amazon cut people “across the Devices and Books businesses, and offered voluntary reduction to employees in its People, Experience, and Technology (PXT) organization,” wrote GeekWire. While the New York Times NYT reported that the number of affected employees could total 10,000, Jassy’s memo made it clear that the layoffs would continue into next year, according to GeekWire. Jassy sent out a memo last week that left it up to leaders in affected parts of its business to decide how many people to cut. The Information reported in 2018 that only a fraction of Alexa users shop through it, and many who have shopped using Alexa have declined to use it a second time to make a purchase.It looks to me as though Amazon is cutting a small number of people in business lines that are unprofitable and in overhead areas in which people are not likely to be very busy. It's said millions of products can be ordered through Alexa.įor now, voice shopping still appears to be a novelty. Jassy said he's "really pleased and optimistic" about Amazon's devices business, adding that Alexa has gotten "a lot of traction," particularly in driving e-commerce purchases.Īmazon has bet heavily on a future where consumers will increasingly use their voice to buy products on its website. ![]() Spokespeople for the Journal and Business Insider did not immediately respond to a request for comment on Jassy's remark. I think there was some misreporting that was going on in the last few weeks." But questions have grown inside the company around the future of Alexa, according to The Wall Street Journal, in a report that said consumers appear to only use the service for a handful of functions, and after heavy investment, the unit lost more than $5 billion annually in recent years.īusiness Insider also reported on the future of Amazon's Alexa unit being in jeopardy.Īsked about reports of Alexa's flawed business model, Jassy retorted, "You have to be careful what you believe in what you read. Alexa was once considered key to the company's future, with Amazon assigning 10,000 employees to work on the technology and Echo smart speakers. Personal Loans for 670 Credit Score or LowerĪmazon's Alexa voice assistant unit was among the divisions hit hardest. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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