Amazon is reducing headcount in its strategically important robotics division, a move some view as signaling broader cost-cutting efforts at the e-commerce giant, which increasingly relies on automation across its fulfillment network.
The cuts this week reportedly impacted a “relatively small number of robotics roles,” an Amazon spokesperson said to Business Insider, and the company is still hiring and investing in “strategic areas.”
The most recent layoffs—adding to the 57,000 corporate positions eliminated since 2022—come as Amazon (AMZN) increases investment in artificial intelligence and data centers to maintain its place in the AI race.
During the company’s recent earnings call, CEO Andy Jassy confirmed the commitment to spend $200B across the company but predominantly in Amazon Web Services “because we have very high demand, customers really want AWS for core and AI workloads, and we’re monetizing capacity as fast as we can install it.”
At the same time, Jassy called robotics “a big one” for the company. With over 1M robots in the fulfillment network, automation will handle tasks that are repetitive, raise productivity, and increase efficiencies.
“We will continue optimizing inventory placement to drive down distance traveled, reduce touches per package, and improve package consolidation, as well as launch robotics and automation to increase efficiency and elevate the customer experience,” Jassy said on the call.
However, the decision to pare back its robotics division comes just weeks after Amazon (AMZN) scrapped development of its multi-armed “Blue Jay” robot. The robot was expected to be deployed in Amazon’s (AMZN) same-day delivery warehouses.
Amazon (AMZN) shares closed on Wednesday nearly 4% higher, having their best day since November.