Amazon is accelerating its automation efforts, aiming to reduce its workforce by 600,000 by 2033. The company plans to automate 75% of its operations, signaling a major shift in its business model. According to The New York Times, this plan could displace up to 30% of its U.S. workforce by 2027, affecting around 160,000 jobs.
The automation push is part of Amazon’s broader strategy to build warehouses with minimal human labor. The robotics team is working towards replacing traditional workers with robots, drastically reshaping the logistics industry. Experts have raised concerns about the long-term impact of such automation, particularly for blue-collar workers.
Amazon’s initiative could influence other major companies like Walmart and UPS, prompting them to adopt similar automation strategies. The move is expected to have a disproportionate effect on communities of color, as warehouse employees at Amazon are three times more likely to be Black than the general U.S. workforce.
MIT economist Darren Stilmoglu warned that if successful, Amazon’s automation efforts could make the company more of a “job destroyer” than a creator. This shift comes after Amazon’s long-standing investment in robotic technology, dating back to its acquisition of Kiva in 2012.
The company has already begun testing its automation model at a high-tech warehouse in Shreveport, Louisiana. Using 1,000 robots, Amazon significantly reduced its reliance on human labor. By 2027, the Shreveport model will expand to 40 locations, including new facilities in Virginia Beach.