Amazon.com Inc. AMZN has decided to terminate its secret project aimed at developing an at-home fertility tracker. The project, known internally as “Encore,” was part of Amazon’s Grand Challenge division.
What Happened: The decision to disband the team working on the fertility tracker was communicated in October, CNBC reported on Thursday. Employees involved in the project will remain on the payroll until Dec. 27, after which they will receive severance if they haven’t secured new positions within the company.
The project originated from Amazon’s acquisition of bluDiagnostics in 2020, a startup known for its saliva-based fertility tracking device. Despite plans to launch the product this year, technical challenges and high costs led to delays, according to CNBC.
Amazon CEO Andy Jassy has been implementing cost-cutting strategies since late 2022, resulting in over 27,000 job cuts and the termination of several projects. This marks a shift from the experimental approach of former CEO Jeff Bezos, who initiated the Grand Challenge in 2014 to explore innovative ideas.
Amazon spokesperson Margaret Callahan confirmed the layoffs and project discontinuation, emphasizing the company’s focus on impactful areas for customers.
Why It Matters: The discontinuation of the fertility tracker project is part of a broader trend at Amazon, where several experimental initiatives have been shelved. In October 2022, Amazon announced the closure of other experimental features, including Amazon Glow, Amazon Scout, and Amazon Care.
This shift in strategy aligns with Jassy’s focus on cost efficiency, contrasting with Bezos’s approach that embraced innovation and learning from failure. Bezos has previously stated that Amazon’s culture is a “blueprint for business success,” emphasizing the importance of customer obsession, innovation, and the willingness to fail. These principles have been central to Amazon’s rapid growth, including the success of Amazon Web Services (AWS).
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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