Amazon (AMZN) has laid off employees and the poor reception of the Amazon Fire Phone is being blamed.
The exact number of employees that have been laid off from Amazon hasn’t been announced. However, these employees came from the company’s Lab126, which is behind development for several of AMZN’s devices, including the Amazon Fire Phone. They’re the first to ever be laid off in Lab126 and there were reportedly dozens that lost their jobs, reports Business Insider.
Amazon’s Lab126 currently employs about 3,00 people. This means that the loss of workers likely wasn’t a large amount. The layoffs also don’t mean that the company is looking to end its time in the hardware department, Business Insider notes.
A report from The Wall Street Journal claims that the failure of the Amazon Fire Phone may lead to the company slowing its hardware development. This report also claims that two of the company’s hardware divisions have been reorganized into one.
Following the release of the Amazon Fire Phone last year, the online retailer has tried to get customers interested in it with reduced prices. This includes dropping the price from its original $449 to $179. It also tried selling the smartphone for 99 cents on a two-year contract.
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