After the financial crisis of 2008 even Santa felt the recession. To prevent bankruptcy of the Workshop, which would be devastating for all the children looking forward to their much beloved Christmas presents.
So Santa had to cut his expenses. He bought cheaper wrapping paper, the Elves had to work a bit longer every day and he even ate less ( you might have noticed he is not as round as he used to be 5 years ago).
But the Elves did not like that very much. They demanded a higher salary, and when Santa really couldn't pay for that, they stopped working all together. So Santa had to do something. He decided to replace the Elves with robots, which had a few advantages.
First of all they didn't need to be paid.
They also didn't have to sleep so they could work 24 hours a day.
But the best thing was, they were a lot faster than those lazy Elves!
So He made a robot for all the different jobs at the Workshop, and used spare parts of his sleigh and some of the toys that were broken or no kid wanted to have anymore.
The job of model (the latest version of the Wrap-O-Tron, the Wrap-O-Tron-X2013) I am presenting to you here, is to wrap all the finished toys and gifts in boxes, and make them ready for delivery. That is why his head resembles a present.