Amazon plans job cuts as it deploys machines to pack orders
Category: #tech  | By Nikita Chaurasia  | Date: 2019-05-14 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Amazon plans job cuts as it deploys machines to pack orders

Amazon is well known for its drive to automate as many segments of its business as possible.

The American multinational technology company Amazon Inc. is reportedly planning to deploy machines to automate boxing up customer orders. The company has initiated to add the technology to a few warehouses in recent years to scan wares coming down a conveyor belt and pack them up in seconds in boxes custom-built for each item, cited reliable sources.

Reportedly, Amazon has considered installing 2 machines at dozens more warehouses, eliminating at least twenty-four roles at each one. Typically, 2,000 people are employed at these facilities.

The move will amount to over 1,300 job cuts around 55 fulfillment centers in the U.S. with a standard-sized inventory. Amazon anticipates that it will recover the cost of the machines in under 2 years, at $1 million per machine besides operational expenses, cited reliable sources.

Apparently, the plan underlines Amazon’s efforts to decrease labor costs and increase profits as automation of the most common warehouse task – picking up item – is still far from its grasp. The changes have not been finalized yet because vetting technology can take a long time before a major deployment.

Amazon is well known for its drive to automate as many segments of its business as possible, whether transporting items or pricing goods in its warehouses. But the company is apparently in a tricky situation as it contemplates the replacement of jobs that have won it public goodwill and subsidies.

An Amazon spokesperson has been reported to say that the company is rolling out the new technology with an aim of increasing safety, adding efficiency in its network and speeding up delivery times. It was added that the resultant efficiency savings is being planned to be reinvested in new customer services sectors which will continue to create jobs.

Amazon has grown its employee base to become one of the largest in the U.S. as it has opened new warehouses and increased wages to attract staff in a tight labor market.

Source credit: https://www.reuters.com/article/us-amazon-com-automation-exclusive/exclusive-amazon-rolls-out-machines-that-pack-orders-and-replace-jobs-idUSKCN1SJ0X1

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

By Nikita Chaurasia

Dr. Reddy's Laboratories Ltd. and Cipla Ltd. surpassed Aurobindo Pharma to rank as the 2nd and 3rd largest drug manufacturers in India by sales in the three months that ended on September 30. This was the first change in the pecking order of the ...

UK’s business confidence drops to its lowest point since 2009

UK’s business confidence drops to its lowest point since 2009

By Nikita Chaurasia

According to recent data, business confidence in the UK dropped to 18% in October, which was its lowest level in at least 13 years. In contrast, however, net balances of confidence stood at 28% in June and 56% in February, according to Accenture and ...

Attero aims to increase recycling capacity, plans for IPO in 2025

Attero aims to increase recycling capacity, plans for IPO in 2025

By Nikita Chaurasia

Attero Recycling, a firm that recycles electronic waste, is aiming to launch an initial public offering (IPO) in 2025, according to its Co-Founder and CEO Nitin Gupta. As per Gupta, the company is currently debating whether to list its shares in I...