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Amazon shuffles its hardware lab after the failure of the Fire Phone

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Jeff Bezos isn't happy with Amazon's hardware branch, and he's not being shy about it. According to a new report in Fast Company, Amazon's hardware branch (known as Lab126) is in the midst of a major reorganization, and the VPs of both devices and digital products have vacated their positions. It's widely seen as fallout for the disappointing performance of Amazon's Fire Phone, which debuted to miniscule sales and confusing pricing in July of last year. As one insider told Fast Company, "Jeff is taking out his frustration with the failure of the Fire Phone" on the managers in charge of the project.

It's still not clear how the shakeup will change Amazon's increasingly ambitious hardware plans, but insiders say we shouldn't expect the company to back off. Many of the changes involve the siloed structure of Lab126, which seems to have grown increasingly unwieldy as the company took on more projects. According to Fast Company's Austin Carr, Bezos was impressed by the development process of the Fire Phone, and part of the reorganization is designed to enable a faster and more streamlined development process. If those plans come to life, this may only be the beginning of Amazon's hardware ambitions. Fast Company will publish a more extensive cover story on Amazon tomorrow, which may shed more light on the company's plans.