While public attention often focuses on workers being replaced by robots or AI, there’s another side to the story — the loss of potential jobs. This means that instead of hiring new employees, a company plans to automate those roles, preventing new positions from ever being created.
According to the latest leak, Amazon reportedly intends to do just that. Internal Amazon Robotics documents suggest the company plans to automate up to 75% of all its operations, with a goal of “saving” 160,000 jobs by 2027 — positions that would have otherwise existed without automation. According to the leaked figures, this strategy could reduce company costs by roughly $12.6 billion over two years.
Amazon spokesperson Kelly Nantel emphasized that these documents reflect the perspective of a single internal team and do not represent the company’s overall strategy. She also noted that Amazon continues to hire actively, including plans to employ around 250,000 seasonal workers during the holiday period.
If Amazon follows through with its automation goals, it could shift from being one of America’s largest employers to what economist Daron Acemoglu warns could become a “job destroyer.” If the plan proves successful and profitable, other companies might follow suit — accelerating automation across entire industries.
It’s hard to predict how much these plans (if confirmed) will impact the U.S. labor market. One thing is clear: consumers shouldn’t expect dramatically lower prices for Amazon’s services — the cost savings are primarily aimed at strengthening the company’s finances. Meanwhile, the importance of reskilling programs and tech-focused workforce training will likely grow for warehouse and logistics employees displaced by automation.
From an economic perspective, there’s also a broader concern: if large numbers of workers lose their income or see it significantly reduced, their purchasing power could decline — raising questions about the long-term sustainability of a consumption-driven model led by companies like Amazon. Perhaps, as automation expands, new kinds of roles will emerge — ones that allow workers to transition without needing extensive retraining.
