Amazon’s army of robots is growing. The humans who built it? Not so much.
The tech giant confirmed on March 3, as Reuters reported, that it had laid off staff across its robotics division, the team responsible for building its robotic and automated systems, which are widely used to run its fulfilment centres worldwide.
Citing two people familiar with the matter, Reuters was told that at least 100 white-collar positions in the unit have been cut. Amazon robotics VP Scott Dresser, in an internal memo obtained by Business Insider, described the redundancy as “difficult but necessary.” He also affirmed that the unit remains a critical investment for the company.
A spokesperson from Amazon informed them that affected employees would receive severance pay, health insurance benefits, and job placement support. This follows Amazon’s January 2026 cut of about 16,000 corporate roles, bringing the total number of corporate job cuts since late 2022 to more than 57,000.
Meet ‘Blue Jay,’ Amazon’s latest failed robot
To fully understand these waves of layoffs, you first need to meet Blue Jay. In October 2025, Blue Jay, a multi-limbed ceiling-mounted robotic arm, was launched to serve as an “extra set of hands” assisting workers in smaller warehouse spaces.
Amazon credited AI-powered digital twin simulations for cutting the robot’s development time to under a year, which is way shorter than what it took to build previous systems.
After much hype, Amazon discontinued it entirely, citing high production costs, poor performance, and manufacturing issues. The Blue Jay team was then reassigned.
It is important to note that the more than 100 layoffs are a separate action by the company affecting white-collar roles.
Why Amazon is still cutting jobs
It appears Amazon is still working through the aftermath of aggressive hiring during the pandemic, and these cuts align with a much broader vision to “flatten” the organisation. Amazon CEO Andy Jassy, in a blog post published in June 2025, had hinted that AI would significantly shrink the company’s workforce, highlighting his goal of running Amazon like the “world’s largest startup”. The latest rounds appear to confirm this vision is in full swing.
Despite the layoffs and Blue Jay shutdown, Amazon’s robotics division has recorded huge success as it has deployed its one millionth warehouse robot as of June 2025 and continues to develop Orbital, its newer next-generation modular automation system, which aims to enhance efficiency.
With Amazon projecting to replace up to 600,000 positions by 2033, the company is not cutting back on AI spending, which is expected to make up a large share of its projected $200 billion in capital expenditures in 2026, driven largely by AI infrastructure such as data centres.
