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STORY: Amazon devices - including the Kindle and Fire TV stick - are set to get a refresh this week, but workers in the unit that makes those products appear to be feeling less than refreshed.

Morale within Amazon’s once-storied hardware division, known as Lab126, has suffered amid staff cutbacks and key executive departures, with many of those remaining worried that new devices in development will flop.

That’s according to more than 15 current and former employees interviewed by Reuters, who spoke on the condition of anonymity due to their employment terms.

Those interviewed described a hodgepodge of new devices in development, including ones that encourage customers to use the once ground-breaking Alexa voice service – which now faces stiff challenges in the age of generative AI and ChatGPT.

Reuters was able to identify five different new devices under development. These include a carbon monoxide detector and a household energy consumption monitor - both with Alexa built into them – as well as a home projector to make any surface a screen.

A spokesperson for Amazon declined to comment on products in development.

In a written response to questions about morale, a spokeswoman said, “To suggest that a few anecdotes paint a picture of reality for an organization as large and diverse as Devices and Services is inaccurate.”

But the sources said the lab’s years of losses and shifting strategies have dampened the mood. Many pointed to the Astro home monitoring robot that launched in 2021 that, at $1,600, remains niche and was criticized for giving some consumers the creeps.

That followed a series of poorly selling devices, such as a voice-assistant-powered clock, the Fire smartphone and a camera that doubles as a personal stylist.

Meanwhile, Amazon said it is developing a generative AI of its own to bolster Alexa but hasn’t revealed much beyond an August assertion that (quote) “every one of our teams is working on building generative AI applications.”