Is Amazon Wasting Money on Prime Video?
After years of kneeling at the altar of long-term thinking and bold experimentation, Amazon (NASDAQ: AMZN) finally seems to be getting religion on the bottom line.
The company is cutting costs like never before, taking an ax to formerly promising new ventures like Amazon Care and announcing its first major round of layoffs, dismissing 10,000 corporate employees. A sizable portion of those layoffs are coming from the company's Alexa and Devices division, where, according to Business Insider, the company is losing $10 billion a year on the voice-activated technology.
The revelation that Alexa has become a financial quagmire begs the question of what else Amazon is wasting money on. Its international business seems like one target for savings. The division, which is mostly made up of e-commerce operations outside of North America, loses money in most years, and has posted an operating loss of $5.5 billion through the first three quarters of this year.
Source Fool.com
