Amazon plans to replace 600,000 US workers with robots
What's the story
Amazon is planning to replace over 600,000 US workers with robots by 2027, internal documents reveal. The company's robotics team is working on automating a whopping 75% of its operations. The move could save the tech giant around $12.6 billion between 2025 and 2027.
Job displacement
Job cuts and warehouse automation
The internal documents suggest that Amazon's automation strategy could lead to the elimination of 160,000 US roles that would otherwise be needed by 2027. This includes warehouse roles that could be automated by machines taking over picking and packing tasks. The company has acknowledged its ongoing investments in automation but denies any plans for mass layoffs, insisting it's all about improving efficiency.
Tech transformation
Proteus and Sequoia: Amazon's advanced robotics systems
Amazon's automation plan involves advanced robotics systems like Proteus and Sequoia, which can navigate busy warehouses independently. These machines come with sensors, cameras, and AI capabilities to move around, lift items, and sort packages without human intervention. The company is also said to be exploring AI-powered logistics and delivery solutions such as autonomous delivery vans and drone delivery services.
Job security
Some workers fear they may be quietly phased out
The news of Amazon's automation plans has raised concerns among its workers. Many employees have noticed an increase in robots and a decrease in human colleagues at their workplaces. Some fear they may be quietly phased out as machines become faster, safer, and cheaper. However, Amazon maintains that automation doesn't necessarily mean job losses and new technologies create opportunities in robotics maintenance, programming, and AI management.
Future implications
A decade of robotics investment
Amazon has been investing in robotics and AI for over a decade, but the new internal documents indicate a more aggressive approach. By 2027, the company plans to automate most of its US fulfillment centers with robots handling packaging, sorting, and movement of goods. This could lead to a major shift in the US labor market as Amazon employs over one million people in the country.