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500 workers fired and replaced by artificial intelligence: the case was broken

The British giant of online shopping, Okado announced The dismissal of 500 employeesMainly in its technical and financial distribution, because of the rapid adoption of artificial intelligence.

The decision taken by a partner is a part of a strategy that aims to reduce costs and improve productivity through automation and in fact, an important turning point in its integrationArtificial intelligence In the work world.

Because Okado takes place of artificial intelligence in place of workers

Okado has decided to replace 500 workers with artificial intelligence to basically improve costs and increase production capacity.

In fact, although it recorded a 14 % increase in sales, the company also faced Important disadvantages (£ 374.5 million), mainly due to the high costs of research and development of new technologies.

In fact, by choosing to maximize and integrate artificial intelligence at the corporate level, Okado has been allowed to reduce the number of employees needed for engineering and technical system management work (and therefore Also reduce costs,

After that, the strategy was to invest in IA, which had to improve the performance of the research and development teams, which required more human commitment before, but now it manages to continue complex projects. Reduce work loads.

Thus, for example, adopt Robot In the warehouses andAutomation Product selection.

Two processes that have reduced the need for wages for repeated tasks, such as Pick And manage the stock, for more than one -third of the articles. This figure is expected to increase by 70 % in the coming years.

Maximum robot and maximum automation in the company

Okado CEO, Tim Steiner said The decline in personnel They were a difficult choice and was not taken lightly. “It is never easy to declare staff deductions. This is a very difficult day for us,” he explained.

However, the CEO emphasized that the latest technologies, including the artificial intelligence system, are now essential for it. The future of the companyWho cannot ignore the continued improvement of its productivity.

“Will depend on our future growth ability to use Artificial intelligence to reduce costs Operational, “he added.

Okado has, in fact, focuses on robotics and industrial automation of warehouses to counter it. Question of Online Products.

The company has already introduced robotic solutions in some of its distribution centers, which includes its latest warehouse in Luton, Where the robots manage An important part of product selection.

The effects of artificial intelligence on labor

The need to hire new workers to deal with sales has decreased, as robots are eligible to manage more orders with less humanitarian requirements.

Although the decision to dismiss 500 workers has been painful, Okadu is committed to exploiting innovation to reduce costs and increase its performance. Other companies will probably follow this example.

With the future that looks rapidly connected to automation, therefore, workers’ ls of challenges are multiplied and worried Need to adapt In a working environment that changes rapidly.

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