Amazon's Robot Army: 600,000 US Jobs at Risk by 2033?
So, Amazon's apparently got some big plans for the future, and it involves a lot more robots and a lot fewer humans. According to some leaked documents and interviews, the online retail giant is aiming to automate a whopping 75% of its operations. If they can pull this off, they're hoping to avoid hiring over 600,000 US workers by 2033. That's a huge number!
Now, I know what you might be thinking: "Robots taking our jobs!" And yeah, that's definitely a concern. The documents suggest that Amazon's robotics team thinks they can cut 160,000 US roles by 2027 alone. That kind of shift could save them a cool $12.6 billion between 2025 and 2027 – about 30 cents per item. It's easy to see why Amazon is pushing so hard on the automation front.
However, it's not just about saving money, is it? The report indicates Amazon is aware of the potential PR nightmare that could come with mass job displacement. There's talk of trying to soften the blow by getting involved in community projects and avoiding buzzwords like "automation" and "AI." Instead, they're considering more vague terms like "advanced technology" or even "cobots" to describe robots that work alongside humans. It's kind of like trying to hide the medicine in a spoonful of sugar. I can see what they are trying to do here.
Of course, Amazon claims that the leaked documents don't paint the whole picture and that they aren't telling executives to avoid specific terms. I suppose only time will tell how this all plays out.
Daron Acemoglu, a Nobel Prize winner in economic science, has an interesting take on this. He said that no one has as much incentive as Amazon to figure out automation. Once they do, others will follow. He also mentioned that Amazon could become a "net job destroyer" if it reaches its goals. That’s some food for thought right there.
In my opinion, if Amazon successfully makes this big change, it could change a lot of things for the US job market and the entire economy.
Source: The Verge