Amazon plans to replace 600,000 jobs with robots
Amazon is preparing for one of the biggest transformations in its corporate history. According to internal documents obtained by The New York Times, the company plans to replace about 600,000 jobs with robots and automate nearly 75 percent of its operations by 2033. This transformation represents a shift for the company from being one of the largest private employers in the United States to potentially becoming one of the biggest job destroyers in the tech sector.
By 2027, Amazon aims to eliminate more than 160,000 new jobs that were planned to be hired in the United States, a move expected to save about 30 cents on every processed product. The company currently employs about 1.2 million people in the country, but it does not intend to increase this number despite its expectations to double revenues by 2033. Instead, robots will increasingly take over logistics, sorting, and shipping tasks that were previously performed by humans.
It is notable that Amazon avoids using words like "automation" or "artificial intelligence" in its internal communications, preferring instead the term "collaborative robots (Cobots)", which are robots that work "side by side" with humans. However, internal documents show that the real goal is to reduce the number of human workers. To mitigate criticism, Amazon also plans to participate in community events and local donation campaigns to "appear as a good corporate citizen."
One of Amazon's warehouses in Shreveport, Louisiana, showcases the company's future; there are 1,000 robots operating independently to transport goods, reducing the need for workers by 25 percent compared to traditional warehouses. The company plans to cut this percentage in half in the future. These centers, known as "Blueprint Centers," serve as a model for about 40 new locations Amazon intends to create or redesign by 2027, including a warehouse near Atlanta, where the update is expected to result in the loss of about 1,200 jobs out of 4,000.
Amazon confirms that automation will also create new job opportunities. According to Odette Madan, head of global logistics at the company, new jobs will emerge such as robotics technicians and maintenance specialists. These workers earn about $24 an hour, compared to $19 as a starting wage for many warehouse employees. However, experts point out that these technical jobs will only replace a very small portion of the simple jobs that will be eliminated.
Financially, this project is extremely large. After an internal presentation to the board in 2024, it is said that Amazon reduced the budget for the automation project to less than $10 billion, with expectations of saving more than €12 billion between 2025 and 2027. This direction towards "achieving greater efficiency across the board" is led by Andy Jassy, who succeeded Jeff Bezos in managing the company. Analysts at Bank of America point out that robots have now become a key element in improving Amazon's profits, as the company's focus shifts from growth to cost reduction.
This shift to make one of the largest employers in America a net job destroyer. Statistics indicate that Amazon warehouse workers in the United States are three times more likely to be Black compared to the national average, raising concerns that layoffs resulting from automation will disproportionately affect vulnerable groups and impoverished areas.