Amazon recently announced that it is shutting down its Halo division, which sells health and sleep trackers. The decision came as part of the company’s wider layoffs. The division will stop supporting Halo services from July 31st and will fully refund Halo device purchases made in the preceding 12 months. In a blog post, Amazon stated that it had notified impacted employees in the US and Canada, but it did not specify how many employees will be affected by the closure of the Halo division.
Background of the Halo Division
Launched in 2020, the Halo division introduced the original Halo band that served as a fitness tracker and provided customers with access to specific health monitoring and analysis services offered by Amazon. Later, the division released two additional products, the Halo View, and the Halo Rise. The former is a contactless sleep tracker, while the latter is a smart alarm clock.
Regulatory Scrutiny and Competitors
Like its peers, Apple and Alphabet’s Google, Amazon has invested in health-tracking technology for consumers. However, the company has drawn regulatory scrutiny in the past over the collection of sensitive information through its fitness wristband, such as body fat percentage.
Amazon’s Layoffs
The recent decision to shut down the Halo division is part of Amazon’s second retrenchment drive, which it disclosed in March, involving the layoff of 9,000 employees. Impacted staff were informed about the cuts via email from the heads of Amazon Web Services and the People Experience and Technology team.
Refunds for Halo Device Purchases
According to Amazon, Halo device purchases made in the past 12 months will be fully refunded. Customers who have Halo subscriptions beyond July 31st will receive a prorated refund based on the time remaining on their membership.
Final Thoughts
The shutdown of the Halo division could be a strategic move by Amazon to focus on other areas of its business. However, it also highlights the intense competition in the health-tracking technology market and the regulatory scrutiny that comes with it. Nonetheless, Amazon’s move to fully refund Halo device purchases made in the past 12 months is a positive step toward customer satisfaction.
