Amazon.com, Inc. (AMZN) experienced a 2.14% decline in stock value, closing at $217.28, following the revelation of internal documents that outline a controversial vision for automation. The report, first surfaced by a major media outlet, indicates that Amazon plans to replace over 600,000 U.S. jobs with robots by the year 2033.
The leaked documents suggest that Amazon is targeting a significant transformation in its operational framework, aiming to automate a staggering 75% of its business processes. This ambitious plan could result in the loss of 160,000 jobs by 2027 alone, translating to savings of approximately $12.6 billion—an estimated 30 cents reduction in the cost of each delivered item.
According to the report, Amazon’s robotics division is at the forefront of this automation drive, which could radically reshape the workforce landscape within the company. While the automation initiative promises enhanced efficiency, Amazon is reportedly adopting a public relations strategy to mitigate potential backlash. The company is choosing to avoid terms like “automation” and “AI,” instead opting for phrases such as “advanced technology” and “cobots,” emphasizing collaboration between robots and human workers.
Shifting Public Perception
In a bid to soften the public’s reaction to potential job losses, internal communications reveal that Amazon plans to bolster its image as a responsible corporate citizen. This includes increased participation in community events and charitable initiatives, aiming to position itself as a contributor to local economies rather than a job eliminator.
An Amazon spokesperson argued that the leaked documents provide an incomplete picture, noting that they reflect only one team’s perspective within the company. The spokesperson emphasized that Amazon continues to be a significant job creator in the U.S., with plans to hire 250,000 seasonal employees for the upcoming holidays.
The Economic Landscape
Currently, Amazon employs around 1.5 million individuals, making it the third-largest employer in the United States, following the federal government and Walmart. A workforce reduction of 600,000 would equate to the entire workforce of FedEx, raising concerns about the socio-economic implications of such drastic changes.
Research on automation indicates that every robot introduced per 1,000 workers has been linked to a 0.42% reduction in wages and has already displaced approximately 400,000 U.S. jobs since 2020. Despite these findings, Amazon maintains that its automation efforts will not completely erase job opportunities. Instead, the company argues that it will create higher-paying technical roles and invest in upskilling its current workforce.
As Amazon moves forward with its ambitious automation agenda, it finds itself under increasing scrutiny regarding the broader social and economic consequences of such a sweeping shift in its operational strategy. The balancing act between technological advancement and workforce stability remains a critical issue as the company navigates its future.
