E-commerce giant Amazon (AMZN) is considering significantly growing its robotics program to the point that it could eliminate up to 600,000 jobs the company would have otherwise needed to fill by 2033, according to internal documents reviewed by the New York Times (NYT). Notably, the plan aims to automate 75% of Amazon’s operations, with 160,000 U.S. roles potentially avoided by 2027. With projected savings of about $0.30 per item delivered, Amazon could save tens of billions of dollars by the end of the decade if automation scales as expected.
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Interestingly, robotics now assist in roughly 75% of Amazon’s global deliveries at over 300 facilities worldwide, thereby making it the largest system of industrial mobile robots in operation today. This push highlights just how important automation has become to Amazon’s logistics strategy and future cost-cutting goals. Amazon is so convinced that this automated future is near that it has begun considering ways to soften the impact on communities that may lose jobs. For instance, documents revealed plans to promote a “good corporate citizen” image through involvement in events like local parades.
Internally, the company also discussed avoiding terms like “AI” and “automation” in favor of “advanced technology,” and using “cobot” to suggest robots working alongside humans. However, Amazon told The Times that the documents viewed were incomplete and reflected the views of one group, not the company’s overall hiring strategy. Furthermore, spokeswoman Kelly Nantel added that Amazon still plans to hire 250,000 seasonal workers and that its community efforts are not tied to the use of automation.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 42 Buys assigned in the past three months. Furthermore, the average AMZN stock price target of $268.45 per share implies 21.2% upside potential from current levels.
