Amazon is reportedly leaning into automation plans that will enable the company to avoid hiring more than half a million US workers. Citing interviews and internal strategy documents, The New York Times reports that Amazon is hoping its robots can replace more than 600,000 jobs it would otherwise have to hire in the United States by 2033, despite estimating it’ll sell about twice as many products over the period.
Documents reportedly show that Amazon’s robotics team is working towards automating 75 percent of the company’s entire operations, and expects to ditch 160,000 US roles that would otherwise be needed by 2027. This would save about 30 cents on every item that Amazon warehouses and delivers to customers, with automation efforts expected to save the company $12.6 billion from 2025 to 2027.
Amazon has considered steps to improve its image as a “good corporate citizen” in preparation for the anticipated backlash around job losses, according to The NYT, reporting that the company considered participating in community projects and avoiding terms like “automation” and “AI.” More vague terms like “advanced technology” were explored instead, and using the term “cobot” for robots that work alongside humans.
In a statement to The NYT, Amazon said the leaked documents were incomplete and did not represent the company’s overall hiring strategy, and that executives are not being instructed to avoid using certain terms when referring to robotics. We have also reached out to Amazon for comment.
“Nobody else has the same incentive as Amazon to find the way to automate. Once they work out how to do this profitably, it will spread to others, too,” Daron Acemoglu, winner of the Nobel Prize in economic science last year, told The NYT. Adding that if Amazon achieves its automation goal, “one of the biggest employers in the United States will become a net job destroyer, not a net job creator.”