Amazon’s AI plan may cost over 600,000 new jobs
In this DML Report…
Amazon aims to double its product sales by 2033 without expanding its U.S. workforce, a strategy that could avoid hiring more than 600,000 additional employees, according to internal documents reviewed by The New York Times. The company's robotics team has set a long-term goal to automate 75 percent of its operations. This approach focuses on integrating artificial intelligence and robotics to enhance efficiency in fulfillment centers and delivery processes.
Amazon's chief technologist, Tye Brady, stated that current employees will not lose jobs to robots, emphasizing that the technology is intended to work alongside humans to create safer and more productive environments. Spokesperson Kelly Nantel described the leaked documents as incomplete and not representative of the company's overall hiring strategy, noting that Amazon has created more jobs in America over the past decade than any other company and is actively hiring, including 250,000 positions for the holiday season.
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In 2024, Amazon's logistics division handled approximately 6.3 billion U.S. delivery orders, averaging 17.2 million per day. The company is hosting a "Delivering the Future" event in Milpitas, California, to unveil new robotics and AI technologies for improving deliveries. This follows a recent Amazon Web Services outage that affected external websites and disrupted some package deliveries, with Brady acknowledging the impact and the use of recovery systems.