Business

Amazon plans to replace 600,000 workers with robots by 2033

Amazon plans to replace 600,000 workers with robots by 2033

According to The New York Times, Amazon is preparing a major expansion of automation in its warehouses that could lead to hundreds of thousands of jobs being replaced by robots over the next decade.

The company’s massive robotization and plans

Amazon has been using robots in warehouses for more than a decade, but internal documents seen by The New York Times indicate the company intends to accelerate the process significantly. The publication estimates that by 2033, the use of automated systems will avoid hiring about 600,000 people.

It is not specified whether the introduction of new technologies will lead to mass layoffs. Sources said Amazon is looking to position automation as a natural evolution of the business rather than a reduction in staff. The documents mention that the company wants to use the term “modern technology” instead of “artificial intelligence” or “robots,” and the word “cobot” (short for collaborative robot) instead of “robot,” emphasizing the idea of “human-machine collaboration.”

Amazon’s image and response

To mitigate a possible public backlash, the company plans to become more involved in local initiatives – such as sponsoring parades and charity events like Toys for Tots.

In comments to CNET A spokesperson for Amazon said the publication was based on “incomplete and misleading data.”

“These materials reflect the views of one team and do not represent the hiring strategy of the company as a whole – now or in the future.”

The spokesperson also emphasized that Amazon remains the largest U.S. employer over the past decade and continues to recruit. Specifically, the company plans to hire 250,000 temporary workers for the holiday season.

Impact on the labor market

Today, Amazon is the third largest employer in the U.S. by number of employees, after the federal government and Walmart. The company employs about 1.5 million people, mostly in warehousing and delivery.

The 600,000 positions cut is comparable to the complete disappearance of a corporation like FedEx, which employs about 550,000 people.

According to research conducted by 2020, each additional robot per 1,000 workers reduces average wages in the U.S. by 0.42%, and collectively has already shed about 400,000 jobs.

“Our investments continue to create significant employment opportunities, especially in higher-paying fields. Performance growth in one area allows us to invest in others – both existing and new – which brings additional value to clients.”

The company says its practices show the opposite: automation adoption is accompanied by job growth and employee retraining programs.

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