1313 ET - Amazon's eight new robots are key to improving the company's cost structure, Bank of America Securities analysts say in a research note. The robots, which help sort and handle packages, are instrumental to solving long-term staffing challenges given Amazon currently employs close to 1 million logistics and fulfillment workers that can have 50% annual churn, the analysts say. The robots will reduce labor and employee injury costs while driving higher utilization of Amazon's warehouses and increasing order accuracy, in turn minimizing the number of product returns and related costs, the analysts say. Such cost savings could also open more rural areas to same-day delivery, the analysts add. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
May 12, 2025 13:13 ET (17:13 GMT)
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