Amazon Abandons Blue Jay Warehouse Robot In Less Than Six Months, Pivots To New Technologies: Report

Namrata Sen

Mon, February 23, 2026 at 10:30 AM GMT+9 2 min read

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Amazon.com Inc. (NASDAQ:AMZN) has reportedly discontinued its recently introduced warehouse robot, Blue Jay, and reassigned its staff to other robotics projects.

The operations of the robotic system were ceased in January, a few months after its launch in October, Business Insider reported on Tuesday. The robot, designed for same-day delivery warehouses, faced hurdles such as high costs, manufacturing complexity, and implementation issues.

Despite the discontinuation, Amazon intends to incorporate parts of Blue Jay’s technology into future systems, including a new one named “Flex Cell”. This change aligns with Amazon’s shift from the older same-day warehouse system, internally known as “Local Vending Machine” (LVM), to a new system called “Orbital”.

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Unlike LVM, Orbital is modular, made up of multiple components that can be arranged in different configurations. This adaptable design aims to ease deployment and scaling, potentially enabling its use as a micro-fulfillment system inside Whole Foods stores.

Amazon.com did not immediately respond to Benzinga’s request for comment.

Blue Jay Phased Out Despite Bright Outlook

Amazon’s decision to discontinue Blue Jay comes as a sharp contrast to the company’s ongoing efforts to automate its operations. In October, Amazon celebrated a robotic milestone while emphasizing that it was not replacing human workers. However, new documents suggested that Amazon’s robotic progression could potentially replace the need for human workers.

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Earlier this month, Morgan Stanley analyst Brian Nowak predicted that Amazon’s advanced robotics technology could potentially save the company over $10 billion annually by 2030. The analyst projected that for every 10% of Amazon’s U.S. units processed through the new robotics-enabled warehouses, savings could range from $1.5 billion to $3 billion.

Amazon’s move to discontinue Blue Jay and shift to new systems like Orbital and Flex Cell comes at a time when the physical AI sector, including robots and robotaxis, is projected to become a $1 trillion market by 2035, according to Barclays.

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This article Amazon Abandons Blue Jay Warehouse Robot In Less Than Six Months, Pivots To New Technologies: Report originally appeared on Benzinga.com

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