Final answer:
The claim that Amazon's use of Kiva robots has significantly reduced its workforce is false. Automation can lead to job displacement for certain roles, but it also creates new positions and is part of Amazon's strategy to maintain low costs rather than cut workforce drastically.
Step-by-step explanation:
The statement that the use of Kiva robots has allowed Amazon to radically reduce headcount and save money by cutting its workforce is false. While automation, such as the use of Kiva robots in Amazon's warehouses, has improved efficiency and may lead to changes in the types of jobs available, there is no clear evidence that it has been used to significantly reduce the overall workforce at Amazon. Automation does replace some jobs that are routine and repetitive, but companies still require a significant workforce to manage operations, customer service, and other tasks. Moreover, such technologies often lead to the creation of new jobs, such as maintenance and programming of the robots, that require a different set of skills.
For Amazon, the use of highly computerized systems and robots in warehouses is a part of their strategy to maintain low costs and improve efficiency. By holding inventories in huge warehouses in low-rent locations and utilizing robots alongside relatively low-skilled workers, Amazon benefits from economies of scale and maintains low average costs per sale. This illustrates Amazon's approach to leveraging technology for competitive advantage, rather than primarily as a means to reduce headcount.