Automation could eliminate up to 160,000 US jobs by 2027
The leaked documents reveal that Amazon’s robotics team is working on automating 75% of the company’s operations. The automation process could eliminate up to 160,000 US jobs by 2027. Each item Amazon warehouses and delivers could be cheaper by nearly $0.30 due to these automation efforts, which are expected to save the company a whopping $12.6 billion between 2025 and 2027.
Amazon has been considering ways to improve its image
In light of the potential backlash over job losses, Amazon has been considering ways to improve its image as a “good corporate citizen.” The company has thought about community projects and avoiding terms like “automation” and “AI.” Instead, it looked at using broader terms such as “advanced technology” and even referred to robots working alongside humans as “cobots.”
Response from Amazon
In response to the leaked documents, Amazon has said they are incomplete and do not reflect the company’s entire hiring strategy. The company also denied reports that executives have been told to avoid using specific terms when talking about robotics. “Nobody else has the same incentive as Amazon to find the way to automate,” said Daron Acemoglu, a Nobel Prize-winning economist, stressing on potential job losses if these plans are implemented successfully.