Editor’s Note: This article originally appeared on FreightWaves.com.
Just as Amazon Prime Air drone delivery was beginning to gather momentum, the service reportedly was hit with another key setback.
Amazon Layoffs Hit Drone Division
People familiar with matter say Prime Air drone unit is experiencing 'significant' layoffs.
Key Takeaways:
- Amazon's Prime Air drone delivery unit reportedly experienced significant layoffs, cutting a large number of employees, shortly after launching its first commercial drone delivery services in California and Texas.
- These job cuts are part of Amazon's broader plan to reduce 18,000 jobs, though Amazon publicly reaffirmed its commitment to its initial pilot drone delivery markets.
- The layoffs add to Prime Air's history of challenges and slow progress, leaving it trailing competitors like Alphabet's Wing and Walmart's DroneUp, who have more established commercial drone delivery networks.
- The substantial reduction in the drone delivery workforce suggests potential modifications to the future development and expansion of Amazon's long-envisioned drone delivery program.
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