Amazon is reportedly expanding its automation initiatives to potentially eliminate the need to hire over half a million workers in the U.S. By 2033, the company aims to use robots to replace more than 600,000 jobs, even as it anticipates a doubling of product sales during the same period. Internal strategy documents and interviews suggest that Amazon’s robotics team aims to automate 75 percent of its operations and plans to cut 160,000 jobs by 2027. This automation could result in a savings of approximately 30 cents per item shipped, with projected overall savings of $12.6 billion from 2025 to 2027.
In anticipation of possible negative reactions regarding job losses, Amazon has explored strategies to enhance its corporate image. Reports indicate that the company considered engaging in community projects and refraining from terms like “automation” and “AI,” favoring alternatives like “advanced technology.” The use of the term “cobot” for robots designed to work alongside humans has also been suggested.
In response to the leaked documents, Amazon stated that they were incomplete and did not accurately represent the company’s hiring strategy. The company noted that executives have not been directed to avoid specific terminology related to robotics.
Daron Acemoglu, a Nobel Prize-winning economist, remarked on the implications of Amazon’s automation goals, suggesting that if successful, Amazon could transition from being one of the largest job creators in the U.S. to becoming a net job destroyer. This raises questions about the broader impact of automation practices in the retail sector and the future of employment.
Source: https://www.theverge.com/news/803257/amazon-robotics-automation-replace-600000-human-jobs