https://www.theverge.com/news/803257/amazon-robotics-automation-replace-600000-human-jobs
We've said it before this is a helluva attrition rate...
"Documents reportedly show that Amazon's robotics team is working towards automating 75 percent of the company's entire operations, and expects to ditch 160,000 US roles that would otherwise be needed by 2027."
It really impacts the debate over labor and the labor movement.
There are a lot of reasons to hate Amazon (and, let's be honest, several reasons to love Amazon). But one of the big criticisms has always been the working conditions in the warehouses and that has been a boost to the modern labor movement. But what happens when there is no labor in the warehouse?
Sooner or later, we are going to need to completely change the way governments raise revenue (how do you tax income if nobody has a job?) and the way we distribute benefits (how do you "earn" a living if there is nowhere to work?)
I've mentioned it before, but if you haven't read Kurt Vonnegut's Player Piano, I recommend it. I think it's his second best novel (Slaughterhouse 5 is a masterpiece; Player Piano is merely interesting). Strangely, though written in 1952, I think it captures the problem of automation better than anything else I've read.
Someone needs to insert a 'Luddite Uprising' and 'Ford Massacre' in the timeline.
>> 'Ford Massacre
See, we need to bring back good manufacturing jobs. Make America great again. Like in the 1930s.
Amazon cuts 14,000 corporate jobs as spending on artificial intelligence accelerateshttps://apnews.com/article/amazon-layoff-ai-14000-artificial-intelligence-cb64af47ebb794541fbdfa8fd264932c
Now it's getting serious. The robots are coming for the white collar workers.
There's a lot to unpack though. Is Amazon cutting 14,000 jobs because AI can do those jobs or because they are spending so much money on AI that they have to cut costs somewhere else?
In theory, it looks like a trend....
https://x.com/DKThomp/status/1983154918749008217
Headlines:
UPS cut 40,000 jobs in management and operations
Chegg slashes 45% of workforces, blames 'new realities of AI'
But again, reader beware.
First question: WTF is Chegg?
A: Okay and edtech company.
Second question: how many layoff is 45%
A: 388
As Derek Thompson notes in that Twitter thread, it's like a few years ago when there were many announcements of mass layoffs, but it's not showing up in the national data and it's not clear whether "blames AI" is the same as "caused by AI"
QuoteThe company hasn't been shy about casting blame...: "The new realities of AI and reduced traffic from Google to content publishers have led to a significant decline in Chegg's traffic and revenue." ... Chegg alleged that Google is using its "monopoly power" over web search to force publishers into making their content available for Google Search's AI overviews, which then diminish the need for a user to ever click through to Chegg's website.
https://www.sfgate.com/tech/article/chegg-ceo-severance-deal-layoff-21125296.php
Update: AMZN stock up 10% after hours following quarterly earnings report.