Amazon’s Push for Automation: Potential Risks for 500,000 U.S. Jobs
A recent report by The New York Times highlights Amazon’s ambitious shift toward extensive automation, which may jeopardize half a million jobs across the United States. Internal documents and interviews reveal that company executives anticipate a significant surge in product sales by 2033, expecting to double current figures. To meet this increasing demand without hiring an additional 600,000 staff, Amazon aims to enhance its robotics capabilities.
Key Automation Goals
- 75% Operational Automation: Amazon’s internal robotics division targets a 75% automation level across its operations.
- Hiring Reduction: If successful, the company could avoid 160,000 new hires by 2027, thus reducing shipping and delivery costs by approximately 30 cents per item.
Recently marking the deployment of its one millionth robot, Amazon has ramped up its robotics initiatives since launching its first fully autonomous mobile robot in 2022. However, the company faces scrutiny regarding its community impact and future job losses.
Corporate Strategy and Community Engagement
The report indicates Amazon’s strategy includes a proactive approach to community relations, aiming to mitigate backlash from those potentially affected by job automation. To bolster its public image as a “good corporate citizen,” Amazon is partaking in local events while strategically avoiding terminology like “automation” and “AI.” Instead, executives have been encouraged to refer to their technology as “advanced technology,” and the term “cobot” is being considered in place of “robot” to suggest a collaborative partnership with human workers.
In response to the report, Amazon characterized the plans as incomplete and insisted they do not accurately represent the company’s overall hiring trajectory. Furthermore, Amazon announced it would be hiring 250,000 seasonal employees for the upcoming holiday season, although details on permanent positions remain unclear.
