Amazon might replace 600,000 US employees with robots by 2033
What's the story
Amazon is planning to automate a significant portion of its operations in the United States, as per The New York Times. According to leaked internal documents and interviews with company insiders, the tech giant hopes that its robots can replace over 600,000 jobs by 2033. The ambitious plan comes even as Amazon expects its sales volume to double during this period.
Financial impact
Automation could eliminate up to 160,000 US jobs by 2027
The leaked documents reveal that Amazon's robotics team is working on automating 75% of the company's operations. The automation process could eliminate up to 160,000 US jobs by 2027. Each item Amazon warehouses and delivers could be cheaper by nearly $0.30 due to these automation efforts, which are expected to save the company a whopping $12.6 billion between 2025 and 2027.
PR efforts
Amazon has been considering ways to improve its image
In light of the potential backlash over job losses, Amazon has been considering ways to improve its image as a "good corporate citizen." The company has thought about community projects and avoiding terms like "automation" and "AI." Instead, it looked at using broader terms such as "advanced technology" and even referred to robots working alongside humans as "cobots."
Company statement
Response from Amazon
In response to the leaked documents, Amazon has said they are incomplete and do not reflect the company's entire hiring strategy. The company also denied reports that executives have been told to avoid using specific terms when talking about robotics. "Nobody else has the same incentive as Amazon to find the way to automate," said Daron Acemoglu, a Nobel Prize-winning economist, stressing on potential job losses if these plans are implemented successfully.