Amazon is shuttering its Halo fitness wearables division about two and a half years after launching the health tracking device.
The tech giant will stop supporting Halo devices and the Halo app on July 31.
"At Amazon, we think big, experiment, and invest in new ideas like Amazon Halo in our efforts to delight customers. While we are proud of what we built, we recently made the difficult decision to stop supporting Amazon Halo effective July 31, 2023," the company said in a blog post.
The company launched Amazon Halo in August 2020 looking to get a slice of the health wearables market. It marked the first wearable device launched by the tech giant as it takes on a market dominated by the Apple Watch and Fitbit. It's a global market estimated to be worth around $67 billion by 2024, according to market research.
Along with the Halo wristband, Amazon also launched a subscription service and smartphone app. Amazon's wearable had some familiar capabilities such as activity and sleep tracking but also offered new features such as tools to measure body fat and tone of voice as an indicator of overall well-being.
Rolling out a health wearable tied into Amazon's broader strategy to capture a part of the $3.5 trillion healthcare industry, which started in 2018 with its acquisition of online pharmacy PillPack. Last year, the retail tech giant also shut down its hybrid virtual and in-person care service Amazon Care.
Last year, the company expanded the Halo line with Halo Rise, a bedside sleep tracker.
Amazon said it will fully refund purchases made in the preceding 12 months of Amazon Halo View, Amazon Halo Band, Amazon Halo Rise and Amazon Halo accessory bands.
The company is laying off some employees as a result of the unwinding of the Halo division but the company did not disclose how many employees are affected. Amazon said it had notified impacted employees in the U.S. and Canada. "For employees who are impacted by this decision, we are providing packages that include a separation payment, transitional health insurance benefits, and external job placement support," Amazon said.
According to CNBC, a memo to employees from Dave Limp, Amazon’s hardware chief, and shared by an Amazon spokesperson, cited the economic environment for the Halo shutdown.
“I am so proud of the invention and hard work that went into building Halo, but after evaluating our current investments, our long-term goals, and in light of the current macroeconomic climate, we had to make a difficult decision,” Limp wrote, as CNBC reported. “It was not taken lightly, believe me — and we recognize we are losing valued team members as a result.”
Halo is the latest product to get axed as CEO Andy Jassy looks to cut expenses across the country. Amazon also recently sunset innovations like the Glow video-calling device and Scout delivery robot, CNBC reported.
Amazon is in the middle of massive layoffs, the largest in its 29-year history, according to media reports. Last month, Jassy announced another wave of layoffs impacting about 9,000 employees in divisions including Amazon Web Services, human resources, advertising and Twitch live streaming.
Melissa Cha, Amazon’s vice president of smart home and health, told staffers in a separate mail obtained by The Verge that Halo faced significant headwinds, "including an increasingly crowded segment and an uncertain economic environment."
"Although our customers love many aspects of Halo, we must prioritize resources and maximize benefits to customers and the long-term health of the business," Cha wrote, The Verge reported.