Amazon cuts over 100 jobs in robotics division as it shifts warehouse automation strategy

Amazon

• Amazon laid off over 100 employees from its robotics division.
• Robotics remains a strategic priority despite the job cuts.
• Amazon is shifting focus to new warehouse automation projects.

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Amazon has laid off more than 100 employees from its robotics division as the company reshapes its warehouse automation strategy and continues a broader cost-cutting drive.

The layoffs affected white-collar roles in the unit responsible for designing and building robots used across Amazon’s massive fulfillment network. The division has played a key role in automating the company’s warehouses for more than a decade.

In a message to employees, robotics vice president Scott Dresser described the layoffs as “difficult but necessary.” He added that robotics remains a strategic priority for the company despite the cuts. An Amazon spokesperson also confirmed that a “relatively small number” of roles had been eliminated, saying affected employees would receive severance pay, health insurance coverage and support in finding new roles.

The job cuts come as Amazon continues to trim its workforce following a major hiring surge during the COVID-19 pandemic. Since late 2022, the company has eliminated more than 57,000 corporate roles as CEO Andy Jassy works to simplify the organisation and reduce management layers.

Amazon’s robotics unit has been central to the company’s logistics operations since it acquired warehouse automation company Kiva Systems in 2012. Since then, robots have become a common sight inside Amazon warehouses, helping move shelves of products, sort packages and speed up deliveries. By mid-2024, the company said it had deployed more than one million robots across its fulfillment network.

The latest layoffs also come as the robotics division changes direction on some of its projects.

One example is Blue Jay, a ceiling-mounted robot system that Amazon introduced in October for warehouses handling same-day deliveries. The system featured multiple robotic arms designed to pick and move items quickly. However, the project was quietly shelved earlier this year after facing high costs, manufacturing challenges and difficulties during real-world testing.

Employees who had been working on the project have reportedly been reassigned to other robotics initiatives. Some of the technology developed for Blue Jay is expected to be reused in future systems, including a floor-based setup known internally as Flex Cell.

At the same time, Amazon is working on a new modular warehouse concept called Orbital. Unlike traditional large fulfillment centres, the Orbital system is designed to power smaller, flexible warehouses that could support faster deliveries.

The company is also exploring the possibility of using the system in micro-fulfillment setups, potentially inside grocery stores operated by Whole Foods.

However, the first Orbital warehouse is not expected to be operational until 2027. Until then, Amazon appears to be reorganising its robotics efforts as it looks for more efficient ways to automate its vast logistics network.