Amazon is shutting down its health and sleep tracker division.

In a statement on Wednesday, Amazon confirmed that the Halo division would be shut down as part of wider cost-cutting measures which will include layoffs.

It said that Halo services will no longer be supported from July 31, while Amazon will fully refund all Halo device purchases made in the preceding 12 months.

Amazon introduced its original Halo Band in 2020, and subsequently expanded the range to a total of three devices. The company however was a late entry into the fitness tracker space, joining a market already dominated by Apple, Samsung, Fitbit and others, and the simple Band, while affordable, lacked many key features offered by its competitors.

In an email to staff, Amazon vice president of smart home and health Melissa Cha wrote: “More recently, Halo has faced significant headwinds, including an increasingly crowded segment and an uncertain economic environment.

“Although our customers love many aspects of Halo, we must prioritise resources and maximise benefits to customers and the long-term health of the business.”

The company said that it has notified impacted employees in the US and Canada, with international staff to be informed in accordance with local processes. Amazon said that impacted employees will receive a separation payment, transitional health insurance benefits and external job placement support.

The news comes a month after Amazon announced 9,000 job cuts as part of a second retrenchment drive. The company began those layoffs in its cloud computing unit and HR units on Thursday.

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