SEATTLE / LONDON (IT BOLTWISE) – Amazon plans to save up to $4 billion annually by 2027 by using robots in its warehouses. This automation strategy could replace 600,000 jobs and significantly increase the company’s efficiency. Analysts expect these measures to reduce operating costs and shorten delivery times.
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Amazon has ambitious plans to automate its warehouses, which could bring the company significant cost savings. According to industry reports, Amazon plans to replace 600,000 jobs with robots in the coming years and aims to automate 75% of its operations. This strategy could bring the e-commerce giant up to $4 billion in annual savings.
The introduction of 40 new robotics warehouses by the end of 2027 is a key part of this strategy. Amazon is already starting to modernize older logistics centers to increase efficiency. These measures could make thousands of full-time jobs redundant over the next decade, while the savings could be felt in just a few years.
Analysts at Morgan Stanley estimate that automation could reduce the cost per order by 20% to 40%. This would mean savings of 60 cents to $1.20 per order. Amazon CEO Andy Jassy has already touted successes at a state-of-the-art warehouse in Shreveport, Louisiana, where fulfillment costs were reduced by about 25%.
Automation could also reduce the need to hire over 160,000 new workers in the U.S. by 2027, which would mean additional cost savings of about 30 cents per item shipped. These developments could help Amazon strengthen its market position and further improve the efficiency of its supply chain.
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