Amazon sacks dozens of staff at drone project, taps new manufacturers

Amazon has reportedly reached tentative deals with two external manufacturers to build component parts of its long-awaited drone.

The logo of Amazon is pictured inside the company's office in Bengaluru, India. Picture taken April 20, 2018. REUTERS/Abhishek N. Chinnappa/File Photo (REUTERS)

U.S. online retailer Amazon.com Inc has laid off dozens of R&D and manufacturing staff from its delivery drone project, Amazon Prime Air, the Financial Times reported on Thursday.

The company has reached tentative deals with two external manufacturers to build component parts of its long-awaited drone, the newspaper said, adding that more deals with third parties could be finalised soon.

The full terms of the agreements with Austria's FACC Aerospace and Spain's Aernnova Aerospace were still being finalised, the FT report said, citing a person familiar with Amazon's plans.

Amazon, Aernnova and FACC did not immediately respond to a Reuters request for comment.

Jeff Wilke, the chief executive officer of Amazon's worldwide consumer business, had said in June that drone deliveries will be available "in months".