Amazon.com Inc. AMZN has determined to terminate its secret venture geared toward creating an at-home fertility tracker. The venture, identified internally as “Encore,” was a part of Amazon’s Grand Problem division.
What Occurred: The choice to disband the group engaged on the fertility tracker was communicated in October, CNBC reported on Thursday. Workers concerned within the venture will stay on the payroll till Dec. 27, after which they’ll obtain severance in the event that they haven’t secured new positions throughout the firm.
The venture originated from Amazon’s acquisition of bluDiagnostics in 2020, a startup identified for its saliva-based fertility monitoring system. Regardless of plans to launch the product this yr, technical challenges and excessive prices led to delays, in line with CNBC.
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Amazon CEO Andy Jassy has been implementing cost-cutting methods since late 2022, leading to over 27,000 job cuts and the termination of a number of tasks. This marks a shift from the experimental strategy of former CEO Jeff Bezos, who initiated the Grand Problem in 2014 to discover progressive concepts.
Amazon spokesperson Margaret Callahan confirmed the layoffs and venture discontinuation, emphasizing the corporate’s concentrate on impactful areas for purchasers.
Why It Issues: The discontinuation of the fertility tracker venture is a part of a broader development at Amazon, the place a number of experimental initiatives have been shelved. In October 2022, Amazon introduced the closure of different experimental options, together with Amazon Glow, Amazon Scout, and Amazon Care.
This shift in technique aligns with Jassy’s concentrate on price effectivity, contrasting with Bezos’s strategy that embraced innovation and studying from failure. Bezos has beforehand acknowledged that Amazon’s tradition is a “blueprint for enterprise success,” emphasizing the significance of buyer obsession, innovation, and the willingness to fail. These rules have been central to Amazon’s fast progress, together with the success of Amazon Net Providers (AWS).
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