Leaked internal documents reveal Amazon’s plan to replace 600,000 U.S. jobs with robots by 2033, automating 75% of its operations to save $12.6 billion, a move experts warn could transform one of America’s largest employers into a net job destroyer despite company denials of widespread layoffs. (Source: Image by RR)

Economist Daron Acemoglu Warns Amazon Could Become a Net Job Destroyer

Amazon is reportedly preparing for a massive automation overhaul that could see over 600,000 U.S. jobs replaced by robots within the next decade, according to internal documents and interviews obtained by The New York Times. The company’s robotics division, according to an article in theverge.com,  is reportedly targeting the automation of 75 percent of Amazon’s entire operations, a shift expected to save $12.6 billion between 2025 and 2027 by reducing labor costs and increasing warehouse efficiency.

The internal strategy outlines that by 2027, Amazon could eliminate 160,000 positions, with the company estimating savings of 30 cents per item shipped due to automation. Despite anticipating doubling its sales volume by 2033, Amazon hopes to avoid hiring hundreds of thousands of workers it would otherwise need. The leaked materials also suggest the company has deployed over one million robots across facilities and is testing bipedal “cobots” like Agility Robotics’ Digit to handle tasks traditionally performed by humans.

In response to the leak, Amazon spokesperson Kelly Nantel dismissed the report, stating that it reflects “the perspective of just one team” and does not represent the company’s hiring strategy. She emphasized that Amazon is “actively hiring,” including plans to add 250,000 seasonal workers for the upcoming holidays. The company also denied instructing executives to avoid using terms like “AI” or “automation” and claimed its community initiatives are unrelated to the automation rollout. Still, the documents reportedly show that Amazon explored rebranding its robotics strategy using softer terms like “advanced technology” to offset potential backlash.

Economists warn that if Amazon achieves its automation goals, the consequences could ripple across the U.S. labor market. MIT economist and Nobel laureate Daron Acemoglu told The Times that Amazon’s success in large-scale automation could make it “a net job destroyer, not a net job creator.” Given Amazon’s scale as one of the nation’s largest private employers, its push toward fully automated logistics could redefine the future of warehouse work, consumer prices, and the broader debate over technology’s impact on employment.

read more at theverge.com