Amazon has increased the use of robots as the need for cost-cutting measures grows and sales growth slows. Almost three-quarters of the packages that the company has shipped have already been handled by some form of robotic gadget. Its newest robot, the Sparrow, can freely travel alongside people on the warehouse floor and can pick up objects before they are put in a box. Authorities have hailed the robot as a significant breakthrough. Later this year, Amazon will begin making its first drone deliveries in the US. But Tye Brady, the chief technical officer of Amazon Robotics, notes that this is anticipated to reach 100%, or almost, in the following five years. “Jobs will change for sure, but the need for humans will always be there,” Mr. Brady said.

Dwight Klappich, research vice president for Gartner’s logistics division, explains that organizations throughout the supply chain are investing heavily in robotics as a result of the labor shortage. According to Amazon, 500 million parcels will be delivered by drones per year by the end of the decade. But even so, that will only account for a tiny fraction of the 5 billion shipments the company claims it currently handles annually. As worries about a possible economic recession have grown and the company’s sales have slowed, robotics has also not escaped the company’s cost-cutting attention.