A grim future: After AI cuts 10% of white-collar jobs, Amazon’s next step is to achieve 75% operational automation—are hundreds of thousands of blue-collar positions also at risk?

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As Amazon, the second largest employer in the United States, embarks on the biggest round of layoffs in its company history—not only 10% of white-collar positions but potentially hundreds of thousands of blue-collar jobs may also be at risk in the future.

On October 28, a Wall Street News article wrote that Amazon plans to cut up to 30,000 employees, possibly starting as soon as this Tuesday. The scale of these layoffs is equivalent to about 10% of the company’s total white-collar workforce and will affect multiple departments such as human resources, cloud computing, and advertising.

The latest news, according to internal documents disclosed by The New York Times, is that Amazon’s robotics team has set more ambitious long-term goals: to achieve 75% operational automation by 2033, a plan that could allow the company to avoid hiring more than 600,000 employees in the coming decade. This could have far-reaching effects on the U.S. blue-collar job market.

Blueprint for Automation: Replacing 600,000 Jobs Within Ten Years?

According to internal strategic documents reviewed by The New York Times, Amazon’s ambitions for automation far exceed outside expectations. The documents show that the robotics team’s target is to increase the company’s operational automation rate to 75% by 2033.

This plan is expected to yield significant financial benefits. The report predicts that by 2027, automation will help Amazon avoid hiring more than 160,000 employees it would otherwise need in the U.S., saving about 30 cents per package processed. In the long run, even if product sales volume doubles by 2033, the company may not need to increase its U.S. workforce, meaning over 600,000 potential new jobs would no longer require human labor.

Regarding this automation plan, Amazon spokesperson Kelly Nantel said in a statement that the documents seen by the media are not complete and do not represent the company’s overall hiring strategy, and she emphasized the company plans to hire 250,000 employees for the upcoming holiday season. Company executive Udit Madan also said that the funds saved by automation-driven efficiency improvements are often used to create new jobs in other fields, such as opening more delivery stations in rural areas.

Robotics "Test Field"

The future of automation at Amazon has already become a reality in some warehouses. The fulfillment center in Shreveport, Louisiana, is seen as the template for future robotic warehouses. The center has deployed thousands of robots, greatly reducing the manpower needed compared to traditional warehouses. Amazon plans to replicate Shreveport’s design in about 40 new and old facilities by the end of 2027.

Leaked documents also show Amazon is developing PR strategies in anticipation of possible social backlash from automation. The documents suggest avoiding words like “automation” and “AI” when discussing robotics, opting instead for softer terms such as “advanced technology” or “cobot” (collaborative robot) to “control the narrative.” Meanwhile, the company is also considering participating in community events to shape its image as a "good corporate citizen." Amazon said its community engagement activities are unrelated to its automation plans.

“Blue Jay” Debuts: The Race Between Efficiency and Cost

To achieve its ambitious automation goals, Amazon is continually launching new sorts of robots. The newly released “Blue Jay” system is a multi-functional robot that consolidates the sorting, picking, and integrating of parcels—previously requiring three separate robot workstations—into one. Amazon says the system is designed to assist employees with heavy tasks and attain greater efficiency within a smaller space.

The application of new technology is rapidly translating into financial expectations. Morgan Stanley analysts estimate in a report that, with the spread of automated warehouses and cost reductions, Amazon could save up to $4 billion a year by 2027. This aligns perfectly with CEO Jassy’s strategy of cost-cutting and efficiency improvement under pressure from investors.

Controversy and Future

Although Amazon emphasizes that automation is intended to improve worker safety and create higher-value technical jobs, such as robotics technicians, controversies persist.

Moreover, Amazon’s moves are not isolated; rather, they mirror a broader trend in the tech industry of embracing AI to cut costs and boost efficiency.

According to Layoffs.fyi, 2023 was the worst year for layoffs in the tech industry. Giants such as Microsoft, Meta, Google, and Intel all announced large-scale layoff plans this year. Many company executives have said bluntly that the application of generative AI has raised efficiency and is one of the reasons for reducing manpower demands.

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