Amazon pins grocery ambitions on Orbital platform as it announces major job cuts

Amazon this week confirmed it would cut 16,000 jobs as part of an effort to "strengthen the company."

It’s a move that has sparked fury in some quarters, with GMB Union's Rachel Fagan stating: “Amazon is showing itself for what it is; a company that cannot be trusted to do the right thing by working people in the UK."

“Bosses are overseeing thousands of job losses which will cause huge damage in towns and cities across the country. Now is the time for decision makers to recognise Amazon as a company fixated on eye watering profits at the expense of workers and local people.”

Enter Orbital, Amazon's new robotic fulfillment platform, which, we think it’s safe to say, will further rile up the GMB and other unions.

In a LinkedIn post, Brittain Ladd, a supply chain consultant and former Amazon executive, said: “Several individuals at Amazon who've been notified that their positions are being terminated, contacted me to tell me about Orbital. This is a replacement for the LVM or local vending machine, that was its version of a micro-fulfillment centre. LVM has been cancelled.”

He added: “Orbital was designed to replace AS/RS and other storage systems in use at Amazon. It will also be used for in-store micro-fulfillment centres (MFC), with a goal of being able to fulfill chilled, frozen and ambient temperature products.”

The leadership team has high hopes for Orbital, Ladd observed. The company has invested $612 million over a five-year period trying to build an automated system that will fulfil grocery and other retail products at the highest picking speeds in the industry.

“According to one of the sources who contacted me, "We are burning a lot of capital and we aren't delivering." (I'm surprised Amazon hasn't acquired TGW Logistics, who specialises in building custom automated fulfillment systems),” Ladd said.

“In 2025, I broke the story that Amazon is opening a Supercenter. I made the argument that the primary purpose of the Supercenter is to test and perfect the use of a 50,000 square feet MFC, and that Amazon is installing an MFC from AutoStore inside the Supercenter. The sources who contacted me confirmed this. However, if possible, Amazon would prefer to install Orbital inside the Supercenter but I don't believe that's possible - at least not yet.”

AutoStore will remain the go to MFC provider until Orbital can be utilised.

“Amazon is not opening hundreds of Supercenters. That would be suicide. I’ve stated since 2017 that Amazon’s best strategy is to open 1,000 or more MFCs across the USA to fulfill online groceries. Amazon is trying to make this a reality,” Ladd said.

Amazon is also opening a warehouse club concept similar to a Costco Wholesale and a Sam's Club. The goal is for Orbital to play a major role in the store.

“If it moves forward with the concept, I believe the first warehouse club will be opened in Frisco, TX, or somewhere else in North Texas. Whole Foods Market is building a large store in Frisco that will have an MFC installed inside - it will be the largest MFC to date inside a Whole Foods. A warehouse club store would be a great fit for Frisco.”

Ladd concluded: “As for the Rivian Mobile Retail vans concept, that is on hold. Several other projects related to groceries have been canceled. Amazon shutting down Amazon Fresh and Amazon Go was long overdue. It is on the right track except for Whole Foods.”

“So what's next? Amazon is automating its workforce with over a million robots; especially in its logistics facilities. You can't unionise robots.”

Amazon did not respond to our request for comment.

2026 RTIH Innovation Awards

Automation will be a key focus area at the 2026 RTIH Innovation Awards.

The awards will open for entries in April. They celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Thursday, 15th October.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.