UPS hires 3,000 robots for new Kentucky warehouse

When you think about employee perks, bolt-tightening and software updates probably aren’t top of mind. However, HR leaders at UPS may need to start offering these to keep their newest employees happy.

The latest. UPS opened its largest warehouse this week in Louisville, Kentucky, but it’s not hiring throngs of employees. The warehouse is expected to initially employ just 200 humans, alongside more than 3,000 robots (sometimes known as “cobots”), Bloomberg reported. While UPS did not tell Bloomberg how many workers would normally staff a 20-acre warehouse, the company claimed the robots are a boon for people operations, saying they’ll increase employee retention by 30% and reduce workplace injuries.

The move is part of the company’s long-term strategy to elevate customer and employee care through technology, Chain Store Age reported, like the autonomous vehicles, pick-and-place and unloading robots, and digital technologies UPS announced in September.

“We continuously look for ways to leverage technology to improve our employee experience and increase efficiency. This is how we build a better and bolder UPS that will continue to be customer-first, people-led and innovation-driven for years to come,” Carol Tomé, CEO at UPS, said.

The robots are coming. UPS isn’t the only employer leaning on robots to do some of its employees’ hardest work. Amazon is rolling out a new robotic arm system, called Sequoia, at some warehouses to help sort and process items, reported Retail Brew. The new system is meant to help reduce potential workplace injuries and work with (not replace) staff, according to the Wall Street Journal.

Additionally, Walmart said in April that its aim is for 65% of its stores to be staffed by robots instead of humans by 2026, Reuters reported. While the company didn’t say how many jobs could be lost as a result of the changes, it said in a filing, “over time, the company anticipates increased throughput per person, due to the automation while maintaining or even increasing its number of associates as new roles are created.”

It’s still unclear what an annual bonus for a robot should look like, but we’ll keep you posted