Zebra Technologies Cuts 75 Jobs in San Jose, Exits Robotics Business

SAN JOSE, CA — Zebra Technologies (NASDAQ: ZBRA) is effectively shutting down its robotics division, a move that will eliminate 75 jobs at its San Jose facility. The Lincolnshire, Illinois-based company filed regulatory paperwork today signaling its exit from the hardware robotics market, specifically the business unit built around its 2021 acquisition of Fetch Robotics.

Key Facts

• Scope: 75 employees in San Jose are impacted as the company winds down its robotics automation group.
• Pivot: Resources are shifting to software, machine vision, and AI-driven workflow automation.
• Timeline: Most layoffs will occur by the end of 2025, with a skeleton crew remaining until March 2026 for transition support.
• Source: The Robot Report, Supply Chain 24/7

Hardware Hardships

The decision marks a sharp reversal for Zebra, which spent $290 million acquiring Fetch Robotics just four years ago. While the autonomous mobile robots (AMRs) were designed to fix labor shortages in warehouses, scaling the physical hardware proved too difficult and costly. According to company filings, the robotics unit failed to meet growth targets despite rising demand for automation.

Instead of building bots, Zebra plans to focus on the “brains” of the operation. The company is cutting costs in hardware to invest heavily in software solutions that help frontline workers using machine vision and AI.

Strategic Exit

In a statement regarding the closure, Zebra leadership noted that the move allows them to “sharpen our strategic focus on digitizing and automating frontline workflows.” The company expects to record pre-tax charges related to the shutdown but anticipates long-term savings by eliminating the capital-intensive robotics line.

This reduction is part of a broader trend of hardware consolidation in the supply chain sector, where margins are tighter compared to pure software plays. The San Jose layoffs specifically affect engineering and support roles tied to the Fetch Robotics product line.