My understanding is that they literally just shut down some of their larger warehouse robotics teams. That doesn't seem to make sense in the context of this article.
This isn't true. A lot of media sources (and people) define Alexa as a "robot" and since 99% of reporters aren't experts in technology you end up with headlines like, "Layoffs Reportedly Hit Amazon's Robotics Team" when in reality it's mostly just people working on Alexa and related hardware.