Walmart (NYSE: WMT) has officially cut ties with Bossa Nova Robotics, according to the Wall Street Journal. Bossa Nova Robotics, a startup based in the San Francisco Bay Area, builds robots capable of scanning shelves in order for companies to track inventory. Originally, Walmart had announced that it would be adding robots to another 650 locations, whereas previously they had robots working in 350 locations. Now, Walmart is ending their contract altogether.
The end of the contract comes after a three-year relationship, with Walmart first ordering 50 robots back in 2017. At the time, such a deal was a tremendous endorsement. Time will tell if Walmart cutting ties with Bossa Nova Robotics will result in a major blow for the startup.
"I cannot comment on Walmart," said Bossa Nova Robotics co-founder Sarjoun Skaff, "however, the pandemic has forced us to streamline our operations and focus on our core technologies. We have made stunning advances in AI and robotics. Our retail AI is the industry's best and works as well on robots as with fixed cameras, and our hardware, autonomy and operations excelled in more than 500 of the world's most challenging stores. With the board's full support, we continue deploying this technology with our partners in retail and in other fields."
During a time when technological advances and innovations are surging and on the rise in many areas, especially due to the coronavirus pandemic, Walmart's separation from Bossa Nova Robotics may come as a surprise to some. However, the reason for the split is because Walmart has opted instead to use its human workers rather than robots to manage product levels.
While this move may impress and enliven advocates of the working class who have long argued that robotics and automation has and will continue to take jobs away from hard-working employees, the retail giant's intentions don't seem to be based on the well-being of its employees.
According to Walmart, it's actually cheaper to have their employees manage inventory tasks than to continue their contract with Bossa Nova Robotics. That said, the shift could also mean more available work for employees which may be helpful during the current economic climate.