Amazon is preparing for a new phase of mass automation in its logistics network. According to internal documentation cited by the U.S. press and covered by specialized outlets, the company aims to automate work equivalent to that of 600,000 people over the next decade, reduce costs by $0.30 per item prepared, and reach a 75% operational automation rate. This isn’t just theoretical: the e-commerce giant already operates pioneering centers where half of the positions will disappear once the next wave of robots is completed.
With around 1.2 million employees, Amazon is the second-largest employer in the U.S. after Walmart. But after years of expansion, management’s focus shifts toward efficiency: more robots, more software, and fewer new hires even if sales volume doubles—a target the company has set for 2033.
A plan to scale robots, contain staffing, and shave costs
The reasoning is simple: each $0.30 saved in picking, packing, and shipping an item, multiplied by billions of units, translates into margins and competitive advantage. Automation would also avoid hiring of more than 160,000 people who would otherwise be needed in the U.S. alone by 2027 due to expected growth. With a fleet of increasingly sophisticated robots and reimagined processes for machines, the hiring curve would flatten over the next ten years.
The ambition is backed by a decade of experience. In 2012, Amazon acquired Kiva for $775 million. Since then, thousands of orange robots—shaped like overgrown “puck” hockey pucks—navigate aisles bringing entire shelves to workstations, reducing human movement and consolidating warehouses. The new phase adds more types of robots, computer vision, AI for planning, and smart conveyors linked to packing and shipping.
Shreveport, the factory of the future: fewer people, more throughput
The Shreveport (Louisiana) center serves as a testbed for the model. Here, thousands of robots already enable operations with 25% fewer staff compared to a traditional center. The plan for 2025 is to introduce new solutions that eliminate another third of current roles, reducing the facility’s workforce to half, while maintaining—or even increasing—its capacity.
This is no isolated case. The Shreveport design will be replicated in 40 additional centers by the end of 2027, starting with the recently opened site in Virginia Beach and including modernizations of older facilities such as Stone Mountain (Atlanta). There, among the 4,000 current employees, 1,200 will disappear following further automation, while the site will process 10% more products.
The message is clear: fewer hands on repetitive tasks, more machines in the flow, and more people in roles like supervision, maintenance, quality analysis, and incident resolution. But the overall arithmetic—600,000 equivalent jobs—illustrates the scale of change if demand truly doubles.
From pilot to standard: an aggressive roadmap
The company aims to increase the automation level of its operations to 75%. To do so, it needs three ingredients: CapEx in robots and systems, software automation of processes, and standardized layouts. The “blueprint” centers like Shreveport embody this recipe: corridors designed for robots, mobile shelves, stations built for minimal human interaction, and comprehensive telemetry to optimize cycle times.
Scale matters. Repeating the model across dozens of locations requires mature supply chains for robots, sensor and actuator suppliers, and the capacity to deploy control software and digital twins to anticipate bottlenecks. Amazon has been building this ecosystem for years; now, it accelerates its deployment.
Efficiency yes, but also open questions
The plan raises questions that extend beyond Amazon. How will this transition impact local labor markets that depend on logistics centers? What new roles (maintenance technicians, data analysts, quality coordinators) will emerge, and how quickly will the current workforce be reconverted? How long before productivity gains—currently $0.30 per item—diminish due to competition, capital costs, or regulatory pressures?
Operationally, massive automation increases the demand for resilience. More sensors and software mean more exposure to systemic failures: a glitch in the control system can halt an entire facility. Mitigating this risk requires redundancies, continuity planning, and degraded operation capabilities when a subsystem fails. Amazon has shown—elsewhere—how its supply chains suffer when the “catalog” or control plans are compromised; similar principles apply in physical logistics.
Efficiency versus employment?
From a business perspective, large-scale automation aligns with narrow margins and competitive pressure. But on a societal level, the numbers suggest substitution. Amazon has traditionally argued that robots complement and improve safety by reducing repetitive motions and injuries, freeing workers for higher value tasks. The reality might be somewhere in between: fewer high-turnover manual jobs and more technical and coordination roles, with transition as the key challenge.
Why now?
The double disruption—growth in e-commerce and advances in robotics/AI—has lowered risks and costs. Computer vision is ready for complex environments, autonomous mobile robots (AMRs) now coexist with motorized shelving systems, and orchestration algorithms maximize overall installation performance. Meanwhile, macro volatility and inflation in recent years have pushed retail giants to scrutinize every cent per unit.
What’s next
If the rollout stays on schedule, Amazon will establish a standard model of highly roboticized center capable of scaling worldwide. The effects won’t be limited to its network: suppliers and competitors will follow suit, accelerating a new balance among automation, employment, and cost per item across the logistics industry.
For policymakers, the challenge will be twofold: support a fair labor transition and ensure that productivity benefits (delivery times, prices, safety) are not achieved at the expense of precarity or inequality. For Amazon, the task will be demonstrating that it can continue automating, fail less, and better explain its decisions to workers, communities, and regulators.
Frequently Asked Questions
How much does Amazon plan to save per item through automation?
Internal plans target $0.30 per item in packing and shipping processes. Given the scale of the business, this unit savings translates into billions of dollars annually.
How many jobs could automation “replace”?
If sales double by 2033 and the automation level reaches 75%, robots would perform work equivalent to 600,000 jobs, avoiding some of the new hires growth would otherwise necessitate.
Which centers are benchmarks for the new model?
The Shreveport (Louisiana) center serves as a blueprint: it already operates with 25% fewer employees and plans to eliminate another third, reducing roles by half. The design will be replicated in 40 sites by 2027, starting with Virginia Beach and modernizations at older locations like Stone Mountain (Atlanta), where approximately 1,200 jobs will be cut from 4,000, while throughput is expected to increase by 10%.
Why is Amazon accelerating automation now?
Due to efficiency (cost savings per unit, less dependence on mass hiring), capacity (handling peaks more smoothly), and because technology—robots, computer vision, AI orchestration—is now reliable enough for large-scale operation.
via: computerbase