A Grim Future: With AI cutting 10% of white-collar jobs, Amazon's next step is to achieve 75% operational automation, and hundreds of thousands of blue-collar jobs are also at risk?

As the second-largest employer in the United States, Amazon is initiating the largest layoffs in the company's history, affecting not only 10% of white-collar positions but also potentially jeopardizing hundreds of thousands of blue-collar jobs in the future.

On October 28, Wall Street Journal reported that Amazon plans to cut up to 30,000 employees, with layoffs possibly starting as early as this Tuesday. This layoff scale is equivalent to about 10% of its total white-collar workforce and will impact multiple business departments, including human resources, cloud computing, and advertising.

The latest news, according to internal documents disclosed by The New York Times, reveals that Amazon's robotics team has set a more long-term goal: to achieve 75% operational automation by 2033, a plan that could allow it to avoid hiring more than 600,000 employees over the next decade. This could have profound implications for the blue-collar job market in the United States.

Automation Blueprint: Replacing 600,000 Jobs in Ten Years?

According to internal strategic documents reviewed by The New York Times, Amazon's automation ambitions far exceed external expectations. The documents indicate that the company's robotics team aims to increase the automation rate of its operations to 75% by 2033.

This plan is expected to yield significant financial benefits. Reports predict that by 2027, automation will help Amazon avoid hiring more than 160,000 employees that were originally planned in the U.S., saving about 30 cents for each package processed by the company. In the long run, even if the volume of goods sold doubles by 2033, the company may not need to increase its U.S. workforce, meaning that over 600,000 potential new job positions will no longer require human labor to fill.

Regarding this automation plan, Amazon spokesperson Kelly Nantel stated in a statement that the documents seen by the media are incomplete and do not represent the company's overall hiring strategy, emphasizing that the company plans to hire 250,000 employees for the upcoming holiday season. Company executive Udit Madan also mentioned that the savings from efficiency improvements brought by automation are often used to create new job opportunities in other areas, such as opening more distribution centers in rural areas.

Robot "Test Field"

Amazon's automated future has already become a reality in some warehouses. The fulfillment center located in Shreveport, Louisiana, is seen as a template for future robotic warehouses. This center has deployed thousands of robots, significantly reducing the manpower required compared to traditional warehouses. Amazon plans to replicate the Shreveport design in about 40 new and existing facilities by the end of 2027.

Leaked documents also show that Amazon is developing public relations strategies to address potential social backlash from automation. The documents suggest avoiding terms like "automation" and "AI" when discussing robotic technology, opting instead for softer expressions like "advanced technology" or "cobot" (collaborative robot) to "control the narrative." At the same time, the company is also considering shaping its image as a "good corporate citizen" by participating in community activities. Amazon stated that its community engagement activities are unrelated to its automation plans.

The Arrival of "Blue Jay": A Race Between Efficiency and Cost

To achieve its ambitious automation goals, Amazon is continuously launching new types of robots. The newly released "Blue Jay" system is a multifunctional robot that integrates the picking, sorting, and packaging processes that previously required three separate robotic workstations. Amazon claims that the system is designed to assist employees with heavy tasks and achieve higher efficiency in a smaller space.

The application of new technologies is rapidly translating into financial expectations. Morgan Stanley analysts estimated in a report that with the promotion of automated warehouses and cost reductions, Amazon could save up to $4 billion annually by 2027. This aligns perfectly with CEO Jassy's strategy of pushing the company to cut costs and improve efficiency under investor pressure.

Controversies and the Future

Although Amazon emphasizes that automation aims to improve employee safety and create higher-value technical positions, such as robotics technicians, controversies persist.

Moreover, Amazon's actions are not an isolated case but a reflection of the entire technology industry's embrace of AI and the trend of reducing costs and increasing efficiency.

According to data from Layoffs.fyi, 2023 is the most severe year for layoffs in the tech industry. Giants like Microsoft, Meta, Google, and Intel have all announced large-scale layoff plans this year, with many company executives openly stating that the application of generative AI has improved efficiency and is one of the reasons for reducing labor demand.