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Report: Amazon laying off product engineers amidst restructure of hardware innovation hub

The Amazon Fire smartphone is likely in hospice mode, destined for a final market goodbye at some point this year, but Amazon isn’t one to retrench due to a high-profile product failure.

August 31, 2015

The Amazon Fire smartphone is likely in hospice, destined for a final goodbye at some point this year, but Amazon isn’t one to retrench due to a high-profile product failure, even if it clearly believed it had an Apple iPhone contender in play.

A Wall Street Journal report Monday claimed that Amazon is, for the first time ever, laying off dozens of Fire phone engines at its 11-year-old Lab126, its hardware innovation hub, and pulling back on some projects and restructuring.

While not citing any specific source, and noting Amazon did not respond to a request for comment regarding the Lab126 upheaval, the WSJnoted that the research and development team was undergoing some management changes as well.

The bright news ahead, claims WSJ, related to exciting projects in the works, including a fancy kitchen-focused computing device, continued innovation on the Alexa Echo speaker that debuted a few months ago and more devices for the connected home environment. There was also news that Amazon may be developing a hefty battery upgrade for its Kindle, a battery charge lasting up to two years.

"What Amazon makes are devices that are not too flashy, but they are inexpensive and they are simple to use," Tom Mainelli, an IDC analyst, told the WSJ. "Mostly they are another way to serve up content that Amazon can sell you."

Potentially on hold, or also heading the way of the Fire smartphone, are a stylus device called Nitro, a projector and a tablet that’s still in development called Project Cairo.

 "The next logical step for them is a fully connected home," IDC’s Mainelli told WSJ. "With the data they have, they could soon be at the point where all the things you need just arrive at your home, without even asking."