Amazon.com Inc. (NASDAQ:AMZN) is reportedly piloting a new system, Full Facility Load Balancing (FFLB), which is designed to optimize human movement within its robot-filled warehouses.
Amazon’s latest initiative is not just about package handling, but also about human movement within its warehouses. The company’s internal studies suggest that the FFLB system could save millions in labor costs and reduce almost 7 million labor hours each year, Business Insider reported on Thursday.
The company believes this could potentially save millions of labor hours annually.
The FFLB system is designed to automatically reassign workers based on fluctuating package volumes and workloads. The system updates staffing needs every three minutes and recommends relocating workers to balance overstaffed and understaffed areas.
Amazon plans to roll out FFLB across its Amazon Robotic Sortable (ARS) facilities this year. In these warehouses, humans and robots work together to fulfill customer orders
The company told the publication that the FFLB system is designed to help managers respond to changing warehouse conditions rather than replace them, and noted that its projected savings are based on modeling assumptions, not individual worker productivity data.
Amazon.com did not respond to Benzinga’s request for comments.
Automation Overhaul
This move comes after a series of changes in Amazon’s robotics strategy. In February, Amazon discontinued its warehouse robot, Blue Jay, due to high costs and implementation issues. Despite this, the company planned to incorporate parts of Blue Jay's technology into future systems.
Later that month, Amazon acquired New York-based Fauna Robotics, which developed a 42-inch humanoid robot, Sprout. The robot can walk, interact with people, grip objects, and perform simple tasks.
Robots Reshape Amazon's Workforce
The company has been slashing roles amid its automation and robotics push. In March, Amazon laid off employees in its robotics organization, affecting at least 100 white-collar roles within the division. The company stated it routinely reviews its internal structure to ensure teams are positioned to innovate and deliver for customers.
Previously, internal Amazon documents reportedly indicated that the company might increasingly rely on robots to support future growth, potentially eliminating the need to hire about 160,000 workers by 2027. The shift could help Amazon cut costs, with estimates showing savings of roughly 30 cents per item purchased and delivered, while further improving warehouse efficiency.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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