A pre-recorded demo showed an Amazon-branded “octocopter” carrying a small package off a conveyor belt and into the skies to a customer’s home, landing smoothly in the backyard, dropping off the item and then whizzing away. Bezos predicted a fleet of Amazon drones could take to the skies within five years and said, “it’s going to be a lot of fun.”
A decade later, Amazon is finally starting to launch drone deliveries in two small markets through a program called Prime Air. But just as it’s finally getting off the ground, the drone program is running squarely into a sputtering economy and CEO Andy Jassy’s widespread cost-cutting efforts.
CNBC has learned that, as part of Amazon’s plan to slash 18,000 jobs, its biggest headcount reduction in history, Prime Air is losing a significant number of employees. Sources familiar with the matter who asked not to be named for confidentiality said they learned about the Prime Air cuts on Wednesday, when two senior Amazon executives sent emails to employees notifying them that those impacted by the layoffs would be informed shortly. One person realized what was happening when they could no longer access Slack.