Amazon raises its bar by employing robots in its warehouses. The robots can efficiently handle packaging and boxing up orders. Each robot is said to cost around 1 million dollars and can handle up to 700 orders per hour which is 4 to 5 times faster than humans. The machines have been made by an Italian Company called CartonWrap. In a report by Reuters, Amazon has been experimenting with a new type of automated packaging robot that can 3D scan the goods included in an order as they travel down a conveyor belt. Those goods are then placed in a custom-size box the robot creates that’s perfectly sized to fit.
Amazon has the second-largest number of employees in the US and hence wages are a big expense. One robot is equivalent to 24 human workers which means that 24 human roles are no longer required. However, the loss of roles doesn’t necessarily result in a loss of jobs. An Amazon spokesperson said, “We are piloting this new technology with the goal of increasing safety, speeding up delivery times and
adding efficiency across our network. We expect the efficiency savings will be reinvested in new services for customers, where new jobs will continue to be created.” According to Sources at Reuters, “Amazon isn’t looking to reduce its labor costs by layoffs, but rather is aiming to become leaner through attrition. The idea is to eventually stop refilling vacated packaging jobs, which tend to have high turnover and take
their toll on workers. Amazon employees who stay with the company will be trained for other roles”, per the report.