Amazon Reorganizing Its Robotics Research Projects
Amazon is cutting some robotics projects in a reorganization of its research efforts in this field. Canvas, which it bought for over $100 million, is the latest casualty.
Amazon is consolidating robotics research projects to focus on those that help customers most.
Last week, the company shut down Scout, which had designed a small home-delivery robot.
It's part of cost-cutting measures at Amazon, as it faces slowing growth and a looming recession.
Amazon is shutting down Canvas, the warehouse robotics startup it acquired for over $100 million in 2019, Business Insider has learned, as the e-commerce giant continues to cut costs. The move is part of a broader reorganization of its robotics efforts.
Amazon internally announced the decision on Tuesday, according to people familiar with the move. Canvas had a little over 100 employees, one of the people said. Employees are being given the choice to transfer to a different team within Amazon or leave with severance pay.
Canvas is best known for its autonomous vehicles and related technology used in warehouses. A 2017 report said Canvas developed the world's first completely autonomous, industrial cart. Amazon tested Canvas's own carts in its warehouses, but primarily used its software technology to autonomously move semi-bulky items such as TVs, kayaks, and bed frames. They asked not to be identified discussing private matters.
An Amazon spokesperson told Insider that Canvas has been an important part of the company's autonomous warehouse development work and that it will be integrating all of its findings to "help advance and expand" those efforts.
"We're always reviewing our projects to make sure we're doing the right thing for our customers and our team, and we made the decision to consolidate a few early-stage research and development projects in robotics so we can focus on the pieces that will have the greatest customer impact. As a result, some employees will move to other areas of Amazon and we're supporting them in that process," Amazon's spokesperson said in an email to Insider.
The move is the latest cost-saving measure by Amazon. The company is facing slowing growth and a looming recession and has made a series of decisions lately to shutter projects deemed unnecessary in the current business environment.
Last week, Amazon shut Scout, a mini home delivery robot it launched in 2019. Scout and Canvas were part of Amazon's Robotics group.
Amazon also recently downsized Grand Challenge, its internal moonshots lab, as Insider previously reported. It discontinued Glow, a video-calling device for kids, and shuttered Amazon Care, its telehealth business. The company has implemented a broader hiring freeze in its retail business too, while scaling back several warehouse expansion plans this year.
