NYT Secures Internal Amazon Strategy Document
"Up to 600,000 Jobs Could Be Replaced by 2033"
There have been reports from foreign media that Amazon, the world's largest e-commerce company, is pursuing a plan to automate 75% of its business operations. It is estimated that automation through artificial intelligence (AI) and robotics could replace about 600,000 jobs by 2033.
The New York Times (NYT) reported on the 21st (local time) that it had reviewed an internal strategic document from Amazon outlining plans to automate 75% of its future business operations. This document was also reportedly presented to Amazon's board of directors last year.
According to the document, Amazon's automation work team estimated that by 2027, approximately 160,000 positions needed in the United States could be replaced through automation. As a result, Amazon could reduce packaging and shipping costs by about 30 cents (approximately 430 won) per product sold.
The document also projected that even if product sales volume doubles by 2033, Amazon could handle this increase through automation using AI and robotics without hiring additional staff. Consequently, the NYT noted that the number of potential new hires that could be replaced would reach 600,000.
During the pandemic, Amazon hired a large number of employees to meet the surge in online shopping demand, and currently employs about 1.2 million people in the United States. This is the second-largest workforce after Walmart. However, if the automation strategy is fully implemented, Amazon's employment growth is expected to slow significantly.
Choosing the Term 'Cobot' Instead of 'Robot' to Reduce Backlash... Suggestion for Careful External Communication
The document also stated that it would be necessary to participate more actively in community events to minimize backlash from reduced new hiring. It further suggested using the term 'advanced technology' instead of automation or AI, and the term 'cobot'-meaning 'robots that collaborate with humans'-instead of 'robot.'
The NYT, citing former Amazon executives, reported that Amazon founder Jeff Bezos has long pursued a 'vision of full automation' utilizing robots and AI.
Amazon: "The Document Does Not Represent the Entire Strategy"
However, Amazon issued a statement in response to the NYT report, saying, "The document reviewed by the NYT is incomplete and does not represent the company's overall employment strategy," and added, "We plan to hire 250,000 people just for this year's holiday season."
Daron Acemoglu, a professor at the Massachusetts Institute of Technology (MIT) and last year's Nobel laureate in economics, told the NYT, "There is no company with more incentive to pursue automation than Amazon," warning that "if they prove how to make automation profitable, it could spread to other companies." He added, "If the automation plan is realized, Amazon will become a net destroyer of jobs, not a net creator."
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