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 has experienced "significant" layoffs, reportedly affecting a large portion of its staff, less than a month after launching its first commercial services in California and Texas.
- These job cuts are part of Amazon's larger plan to eliminate 18,000 positions, with sources indicating up to 80% of flight operations personnel in Prime Air may have been impacted.
- Despite the setbacks and personnel reductions, Amazon has reaffirmed its commitment to its pilot delivery programs in Lockeford, California, and College Station, Texas, with plans for gradual expansion within those areas.
- The layoffs underscore the persistent challenges and delays for Amazon's drone delivery project, which has historically struggled to gain momentum compared to competitors like Alphabet's Wing and Walmart/DroneUp.
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