Amazon.com, Inc. (AMZN) Stock: Falls as Leaked Report Reveals Plans to Replace 600,000 U.S. Workers with Robots by 2033

TLDR

• Amazon stock trades at $217.28, down 2.14% following a report on large-scale automation plans.
• Internal documents show Amazon aims to automate 75% of its business by 2033.
• The company could replace 600,000 U.S. jobs, saving an estimated $12.6 billion.
• Amazon plans to mitigate negative publicity by avoiding terms like “AI” and “automation.”
• Company says the leaked documents don’t reflect its full hiring strategy.

Amazon.com, Inc. (AMZN) stock traded at $217.28, down 2.14%, after a New York Times report revealed internal documents outlining plans to replace over 600,000 U.S. workers with robots by 2033.

Amazon.com, Inc., AMZN

The report highlights Amazon’s push to automate 75% of its operations, a shift that could dramatically reshape its workforce and operational efficiency.

Automation and Job Replacement Goals

According to the leaked internal papers, Amazon’s robotics division is working to automate three-quarters of the company’s processes over the next decade. The report suggests that by 2027, automation could eliminate 160,000 jobs, saving approximately $12.6 billion, equivalent to about 30 cents per item delivered.

Amazon reportedly aims to double its goods output within the same timeframe, relying on robots for efficiency. However, the company is taking steps to manage potential backlash by avoiding terms like “automation” and “AI,” preferring phrases such as “advanced technology” and “cobots”, robots that collaborate with human workers.

Public Relations and Community Impact

To soften the public response to potential job losses, internal documents indicate Amazon plans to enhance its image as a “good corporate citizen.” The company may increase community participation in local parades and charity events like Toys for Tots, positioning itself as a contributor to local economies rather than a job eliminator.

A company spokesperson told CNET that “leaked documents often paint an incomplete and misleading picture,” emphasizing that the materials represent only one team’s perspective. The spokesperson added that Amazon remains one of the largest job creators in the U.S., with plans to hire 250,000 seasonal workers for the upcoming holidays.

Broader Economic Context

Amazon currently employs about 1.5 million people, making it the third-largest U.S. employer after the federal government and Walmart. A workforce reduction of 600,000 would equate to the total size of FedEx’s employee base.

Research on automation shows that every robot introduced per 1,000 workers reduces wages by 0.42% and has displaced about 400,000 U.S. jobs since 2020. Amazon maintains that automation will shift, not erase, job opportunities by creating higher-paying technical roles and investing in upskilling employees.

While Amazon’s automation plans could reshape logistics efficiency and profitability, the company faces mounting scrutiny over the social and economic consequences of such large-scale workforce changes.

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