Business Insider and the Financial Times are reporting that Amazon is laying off dozens of R&D and manufacturing staff.
The staff are working on delivery drone service Amazon Prime Air.
The company is turning to two external manufacturers to build components for the drones.
Additional deals potentially in the pipeline, a person familiar with Amazon's plans told the paper.
Amazon's drone deliveries are still "years away."
The company said development will "slowly but surely" progress in 2021.