Amazon.com Inc., America’s second-largest employer, is gearing up for a major workplace shift by planning to replace more than half a million U.S. jobs with robots, according to the New York Times. The report, based on internal documents and executive interviews, suggests the e-commerce giant is moving toward a more automated future.//
Automation Set to Transform Amazon’s Workforce
Since 2018, Amazon’s U.S. workforce has nearly tripled to around 1.2 million. But the company’s automation team predicts that robots could eliminate the need to hire more than 160,000 employees by 2027. According to the report, this shift could save roughly 30 cents per item in processing costs—from picking and packing to delivery—and slash up to $12.6 billion in operational expenses between 2025 and 2027.
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Robots Could Slow Hiring Growth
Last year, Amazon executives told the company’s board that robotic automation could help manage hiring needs, even as sales are expected to double by 2033. With this strategy, the company may avoid hiring more than 600,000 additional employees, the report added.
Amazon’s Push Toward High-Tech Warehouses
Amazon is working to design warehouses that rely very little on human workers. Internal documents reveal that the company’s robotics team aims to automate up to 75 per cent of operations. Interestingly, the documents avoid terms like “automation” or “artificial intelligence,” instead using phrases like “advanced technology” or “cobot,” a term that suggests robots working alongside humans.
Amazon Responds to Report
In response to the New York Times report, Amazon spokeswoman Kelly Nantel said the leaked documents were incomplete and didn’t represent the company’s overall hiring plans. She noted that Amazon still intends to hire 250,000 people for the upcoming holiday season, though the number of permanent roles wasn’t disclosed. The company also denied directing executives to avoid certain terms and clarified that its community programs are unrelated to automation.
The Rise of Amazon Robotics
Amazon’s push for automation started in 2012 with its $775 million acquisition of robotics company Kiva Systems, transforming the way its warehouses operate. Its newest robotic facility in Shreveport, Louisiana, serves as a model for future fulfillment centers, where human involvement is kept to a minimum once packaging begins, according to the report.
