The New York Times reported on Monday that the company is seeking to automate 75 percent of its business operations by 2030 and replace up to 600,000 jobs with robots. Amazon is responsible for hiring about 1.2 million people, the second largest number in the U.S.
According to reports, Amazon’s automation team aims to reduce by about 30% by replacing 160,000 people in the U.S. with robots by 2027. Management predicted that “if robot automation becomes full-fledged, more than 600,000 people will be replaced by 2033. To this end, Amazon’s robotics team needs few manpower and aims to build an “unmanned warehouse system” that automates 75% of its operations.
Amazon is also planning to mitigate the impact of the unemployment crisis on the community. It means that it will participate more in local festivals and events such as parades to create a “good corporate image.”
It is also discussing how to use a relaxed expression called “advanced technology” or “cobot,” which means cooperation between robots and humans, instead of “AI” or “automation” in the process of promoting robot automation.
The New York Times warned that the plan could deal a direct blow to U.S. blue-collar jobs. As many of Amazon’s warehouse workers are black and people of color, there are concerns that the impact of automation could lead to social inequality. “No company will have more incentive than Amazon in finding ways to automate,” said Nobel laureate economist Darren Stilmoglu of MIT. “If the plan succeeds, one of the biggest employers in the U.S. will be a job destroyer, not a job creator.”
Amazon founder Jeff Bezos has been working on robot automation for a long time. The acquisition of Kiva, a robot manufacturer, for $775 million in 2012 was the starting point. Currently, hockey puck-shaped robots carry products across warehouses, greatly reducing the distance traveled by workers.
Last year, Amazon opened a state-of-the-art automation warehouse in Shreveport, Louisiana, and started experimenting. About 1,000 robots were deployed here, reducing manpower employment by 25% compared to the previous year, and it is reported that it has set a goal to reduce half of its workforce next year.
Amazon will introduce the “Shreveport Model” to about 40 facilities by the end of 2027, starting with a large distribution center established in Virginia Beach.
JENNIFER KIM
US ASIA JOURNAL
