Automation strategy aims to double sales without hiring, while promoting 'advanced technology' to soften public perception

U.S. e-commerce giant Amazon is pushing forward with plans to automate 75% of future employee hiring, The New York Times (NYT) reported on the 21st, local time.

According to internal strategy documents obtained by the NYT, Amazon's automation task force estimated that by 2027, 160,000 of the workforce needed in the U.S. could be replaced by automation.

The newspaper noted this would allow Amazon to avoid hiring new staff while saving approximately 30 cents (430 Korean won) per item sold.

Additionally, Amazon executives projected, "Robot automation will enable us to double sales by 2033 without additional hiring in the U.S. for several years." The potential workforce that could be replaced by automation during this period was estimated at 600,000.

The documents also outlined measures to minimize backlash from reduced hiring, including increasing participation in local community events to build an image as a "great corporate citizen."

Instead of using terms like "automation" or "artificial intelligence (AI)," the company is considering adopting phrases such as "advanced technology." Similarly, the word "robot" might be replaced with "cobot" (collaborative robot), which implies human-robot collaboration, the report added.

In response, Amazon stated in a press release, "The document reviewed by the NYT is an internal draft from a specific department and does not represent the company's overall hiring strategy," adding that it plans to hire 250,000 workers for the holiday season this year.

However, the company did not specify how many of these positions would be permanent rather than temporary, the NYT pointed out.

Amazon is the second-largest employer in the U.S., following Walmart.

Daron Acemoğlu, a Nobel laureate in economics from the Massachusetts Institute of Technology (MIT) and last year's winner, told the NYT, "No company has more incentive to pursue automation than Amazon. If they figure out how to make automation profitable, it will spread to other companies."

He added that if the automation plan is realized, Amazon could become a net job destroyer rather than a net job creator.

Founder Jeff Bezos has long pursued automation. The process began in 2012 with the $775 million acquisition of Kiva, a robotics manufacturer. Workers no longer walk miles across warehouses; hockey-puck-shaped robots now transport products.

The Shreveport logistics center in Louisiana already operates as a futuristic model. With approximately 1,000 robots in operation, the facility has reduced its workforce by 25% compared to conventional operations.

Amazon Plans to Replace 600,000 U.S. Jobs With Automation by 2033