Amazon Plans to Replace 500,000 Jobs with Robots: Inside the E-Commerce Giant's Automation Strategy

According to internal documents accessed by the New York Times, Amazon is planning to replace over 500,000 jobs with robots in the coming years.

The company's robotics team aims to automate 75 percent of warehouse operations, creating facilities that require minimal human involvement.

Based on the report, Amazon's automation strategy could prevent the hiring of more than 160,000 people in the United States by 2027. This automation initiative is expected to reduce costs by approximately 30 cents (Rs 26) per item throughout the picking, packing, and delivery process.

Amazon executives anticipate that by 2033, robot automation will eliminate the need for 600,000 new hires, despite projections indicating the company will double its product sales volume. At present, Amazon employs approximately 1.2 million workers worldwide.

Anticipating potential public relations challenges, the internal documents suggest using specific terminology to mitigate backlash. For example, terms like "advanced technology" are preferred over "automation" and "artificial intelligence," while "cobots" (collaborative robots working alongside humans) is recommended instead of simply "robots." The documents also reveal that Amazon has considered enhancing its image as a "good corporate citizen" through increased participation in community initiatives.

When approached for comment, Amazon spokesperson Kelly Nantel told the New York Times that these documents represented the perspective of just one group within the company. She emphasized that Amazon plans to hire 250,000 people for the upcoming holiday season, though no clarification was provided regarding whether these positions would be temporary or permanent.

Amazon's journey into robotic automation began significantly in 2012 with its $775 million acquisition of robotics manufacturer Kiva. Last year marked a milestone when the company launched its most technologically advanced warehouse, where approximately 1,000 robots can process packages with minimal human intervention.