According to a report, Amazon plans to use robots to replace thousands of its employees. This is what the business says.

In order to potentially save 30 cents every processed item, Amazon intends to automate more than half a million jobs. Even though sales are expected to double by 2033, the corporation wants to slow the growth of its workers in the US.

According to a New York Times (NYT) investigation, Amazon officials think the e-commerce behemoth helmed by Jeff Bezos is about to undergo another significant workplace change: the replacement of more than half a million jobs with robots.

The number of Amazon employees in the US has nearly tripled since 2018. By 2027, the company's automation team anticipates that it will be able to save the need to hire over 1,60,000 workers in the United States. According to the analysis, between 2025 and 2027, the automation may save up to $12.6 billion in operating costs and about 30 cents each item that Amazon processes, including picking, packing, and delivery.

Even though Amazon anticipates double its sales by 2033, executives told the board last year that robotic technology might help the business reduce its hiring curve. Amazon added that this would eliminate the need to hire more than 6,000 new workers.

Amazon wants to construct warehouses with minimal human labor in locations built for lightning-fast delivery. According to the article, which cited papers, the company's robotics team eventually intends to automate 75% of its activities.

What was said by Amazon?
Amazon said in a statement that the NYT's access to the records was insufficient and did not fully represent the company's recruiting practices.

Amazon spokeswoman Kelly Nantel clarified that the documents were the viewpoint of a particular group within the firm and mentioned that the company plans to hire 2,50,000 employees for the holiday season. However, the number of permanent roles was not specified by the company.

Internal Amazon documents from the previous year were also reviewed by the magazine. These included formalized plans for a department of over 3,000 corporate and engineering professionals largely focused on creating the company's robotic and automation systems, as well as working papers that showed how different segments of the organization are managing its ambitious automation ambitions.

In an interview, Udit Madan, who is in charge of Amazon's global operations, stated that the business has a long history of creating new jobs through the savings from automation, including a recent initiative to open extra delivery depots in rural areas.

The study cited Madan as saying, "Efficiency in one area of the business doesn't tell the whole story for the total impact it might have."

Amazon's drive for automated facilities

Last year, Amazon opened its most cutting-edge warehouse in Shreveport, Louisiana, which will serve as a prototype for robotic fulfillment centers in the future. There is very little human contact after an item is wrapped. According to the article, which cited papers, the factory, which employs 1,000 robots, cut its personnel by 25% last year when compared to a non-automated setting.

According to the article, Amazon expects to hire around half as many people as it would require if it didn't use automation when it rolls out more robots the next year.

The robotics team's 2025 strategy plan was cited in the paper as saying, "With this significant milestone now in sight, we are confident in our ability to flatten Amazon's hiring curve over the next 10 years."

By the end of 2027, Amazon plans to replicate the Shreveport concept in about 40 locations. A sizable warehouse that recently opened in Virginia Beach serves as the foundation for this endeavor. Amazon has also begun remodeling its older sites, like the one in Stone Mountain, which is close to Atlanta.