Amazon's hardware division, Lab126, responsible for devices like Kindle and Echo, is facing staff cutbacks, low morale, and a pipeline of devices that may not prove successful. The division has seen mass layoffs and key executive departures, including leader Dave Limp. Amazon is expected to launch refreshed versions of existing products and new devices, including a carbon monoxide detector and a household energy consumption monitor with Alexa built into them. However, Amazon's attempts to monetize Alexa have not been successful, and the company faces competition from AI chatbots from Google and startups like OpenAI. Amazon's CEO, Andy Jassy, has been reducing the company's headcount, resulting in 27,000 job cuts across Amazon.