Recently, a report in the New York Times (NYT) has revealed that Amazon, one of the world’s largest e-commerce companies, is now taking rapid steps towards employing robots in place of humans in its warehouses and delivery centers. This change is being made to reduce the company’s expenses and complete the work more quickly.
What’s in the report?
According to a New York Times report, Amazon plans to save about 1.6 lakh jobs by 2027 and reduce the need for thousands more jobs in the future. Documents available inside the company revealed that Amazon’s robotics team is trying to completely automate 75% of its operations in the coming years. As of now, Amazon has about 12 lakh employees in America, but with the arrival of robots this number will not increase much even if the company’s sales double.
Why is Amazon doing this?
The company expects that with the help of robots, it will save about 30 cents on each item in the cost of picking, packing and delivering each product. This means that from 2025 to 2027, Amazon can save about $12.6 billion.
How will a robotic warehouse look?
Amazon has opened a new, fully robotic warehouse in Shreveport, Louisiana. About 1000 robots are working here and the number of employees has reduced by 25%. From the time a product is packed until delivery, humans have very little role in it. The company plans to build 40 more such facilities across the country by 2027. In cities like Virginia Beach and Atlanta, old warehouses are also being given a new look.
Will humans not be needed?
However, Amazon has said that robots are not being used to eliminate jobs, but to make them more efficient. The company’s Global Operations Head Udit Madan said that the money saved from automation will be used to open new depots in new areas, which can also create more jobs.
Amazon responded to the report, saying the documents seen by the NYT were incomplete and did not reflect the company’s full plan. Amazon spokeswoman Kelly Nantel said that 2.5 lakh employees are still being recruited for the festive season, but it was not clarified how many of them will be permanent.