Amazon is preparing to replace more than 500,000 jobs in its U.S. warehouses with robots over the next decade, according to internal documents and reports reviewed by The New York Times.
The move marks one of the most significant automation efforts by a major American employer and is expected to reshape the company’s operational model, workforce structure, and cost dynamics.
The company’s U.S. workforce has grown rapidly in recent years, tripling since 2018 to nearly 1.2 million employees.
However, Amazon now believes that automation can help it avoid hiring more than 160,000 additional workers by 2027 and eventually reduce its reliance on human labor in warehouse operations by up to 75%.
Amazon Automation Strategy Targets Cost Reduction and Efficiency Gains
Amazon’s automation strategy is driven by the need to cut costs and improve operational efficiency.
Executives estimate that replacing manual labor with robotic systems could save the company approximately 30 cents per item processed.
This could translate into billions in savings annually, especially as the company scales its operations to meet growing demand.
The company is testing new warehouse models designed for ultra-fast deliveries, many of which operate with minimal human involvement.
These facilities rely heavily on robotic arms, autonomous vehicles, and AI-driven inventory systems to manage tasks traditionally handled by warehouse staff.
Robotics Team Sets Ambitious Goals for Operational Overhaul
Amazon’s robotics division has outlined long-term goals to automate up to 75% of its warehouse operations.
This includes not only physical tasks like sorting and packing but also backend processes such as inventory tracking and quality control.
The company has already deployed thousands of robots across its fulfillment centers and continues to invest heavily in robotics research and development.
Daron Acemoglu, a professor at MIT and Nobel laureate in economic science, commented on the scale of Amazon’s automation plans: “Nobody else has the same incentive as Amazon to find the way to automate.”
He added, “If Amazon’s plans succeed, one of the biggest employers in the United States will become a net job destroyer”.
Concerns Rise Over Job Displacement and Economic Impact
While Amazon claims that automation will create new technical roles and improve productivity, the scale of job displacement has raised concerns among labor advocates and economists.
Unless companies introduce retraining programs, warehouse workers—many in entry-level roles—may find limited options for redeployment.
The company has not yet detailed how it plans to support affected employees or whether it will offer transition assistance.
Critics argue that without a clear workforce strategy, the automation push could exacerbate job insecurity and widen economic inequality.
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
