World's largest e-commerce company is replacing humans with robots

World's Largest E-Commerce Company:  A recent New York Times report revealed that Amazon, one of the world's largest e-commerce companies, is rapidly moving towards replacing humans with robots in its warehouses and delivery centers. This change is being made to reduce the company's expenses and complete work more quickly.

However, a source of debate is whether employing robots will lead to job losses.

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What's in the report?

According to a New York Times report, Amazon plans to save approximately 160,000 jobs by 2027 and reduce the need for thousands more in the future. Internal company documents reveal that Amazon's robotics team is aiming to fully automate 75% of its operations in the coming years. Currently, Amazon employs approximately 1.2 million people in the United States, but the introduction of robots won't significantly increase this number even if the company's sales double.

Why is Amazon doing this?

The company expects to save approximately 30 cents per item on the cost of picking, packing, and delivering each product with the help of robots. This means that Amazon could save approximately $12.6 billion between 2025 and 2027.

What will a robotic warehouse be like?

Amazon has opened a new, fully robotic warehouse in Shreveport, Louisiana. Approximately 1,000 robots are working there, reducing the number of employees by 25%. From the time an item is packed until delivery, humans play a minimal role. The company plans to build 40 more such facilities across the country by 2027. Old warehouses in cities like Virginia Beach and Atlanta are also being renovated.

Will humans be no longer needed?

However, Amazon has stated that robots are not being used to eliminate jobs, but to make them more efficient. Udit Madan, the company's global operations head, stated that the money saved through automation will be invested in opening new depots in new regions, which could create more jobs.

Summary 

Responding to the report, Amazon said that the documents seen by the NYT were incomplete and did not reflect the company's full plan. Amazon spokesperson Kelly Nantel said that 250,000 employees are still being recruited for the festive season, but it was not clear how many of them will be permanent.

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