In the latest round of layoffs, Amazon has fired more than 100 employees from its robotics division as part of the company’s ongoing cost-cutting and restructuring efforts. The cuts primarily affect white-collar roles in the unit responsible for designing and building warehouse automation systems.
The company has shelved the Blue Jay project – a ceiling-mounted robot system introduced in October for same-day delivery warehouses – due to high costs, manufacturing difficulties, and challenges during real-world testing.
Employees previously working on Blue Jay have been reassigned to other initiatives, with some of its technology expected to be repurposed in future systems, including a floor-based setup known internally as Flex Cell.
Amazon is now said to prioritise new projects such as the modular Orbital system that aims to enable smaller, more flexible warehouses for supporting faster deliveries. The systems could also potentially integrate into micro-fulfillment setups, such as inside Whole Foods grocery stores. The first Orbital warehouse is not projected to become operational until 2027.
Amazon blames cost-cutting for layoffs
The robotics division reductions fit into Amazon’s larger workforce trimming campaign under CEO Andy Jassy. Since late 2022, the company has let go of over 57,000 corporate roles following a pandemic-era hiring surge. Recent moves include a January 2026 announcement of 16,000 additional job cuts, bringing total corporate reductions closer to 30,000 since October 2025. These efforts focus on reducing management layers, increasing ownership, and utilising efficient workflows from AI and automation.
Amazon’s robotics unit, however, remains a core strategic priority. The company has deployed more than one million robots across its fulfillment network since acquiring Kiva Systems in 2012, using them to move shelves, sort packages, and accelerate deliveries.
Company says ‘difficult but necessary’
In a message to staff, Amazon Robotics VP Scott Dresser called the layoffs “difficult but necessary” while reaffirming that robotics continues as a key focus for the company. An Amazon spokesperson described the affected roles as a “relatively small number,” confirming that affected employees would receive severance pay, continued health insurance coverage, and assistance in finding new positions internally or externally.
No immediate disruptions to warehouse operations have been reported. The company highlights that these changes support more efficient, scalable automation for its vast e-commerce network.