Amazon is one of the biggest companies in the world. They increased their workforce from 76,000 to 132,000 by the end of 2016. But even with this being one of the most significant increases of employees in such a period for an already established company, many still believe that they are looking to reduce and remove employees eventually.

Fear that Amazon workers will lose their jobs

The reason for the reduction is because of their heavy usage of Robots and machinery. Amazon recently caused a stir online when they unveiled a video showing that they will be doing deliveries via drones.

At the moment, almost half of their employees are connected to the delivery unit. If they are to convert to drone delivery then, in theory, most of these individuals’ are set to lose their jobs. That is more that 60,000 people.

But the thought that Amazon is set to fully mechanize their warehouse, this would account for another third of their employees.

After all, no one can stop them from doing this as they are a private company with no obligation to anyone, but one mistress called profits.

Why this is a misconception

Many companies, when developing their firm, either have to sacrifice capital or time. Companies toil hours on end on choosing what to sacrifice. Few have struck that balance. If you sacrifice your time and do things longer, you will eventually sacrifice on your profits. If you sacrifice your capital and invest capital in a quick turnover, you will have reduced resources.

But Amazon found a loophole that does not require them to sacrifice either. By implying robotics, the capital needed to run the place is lower and the turnover is still short.

But what people miss, is that Amazon is not looking to replace the employees, rather give them a helping hand. The Amazon robots will work alongside the employees.

How it works

Amazon is set to increase the number of KIVA robots from 30,000 to 45,000 units. But instead of replacing the employees they want the robots to assist them. The robots will locate and move the items to the dispatch conveyor belt. This is a job that has previously been done by the employees. Amazon has thousands of shelves. Even if the employee knows the exact location, it will still take them a considerable time to locate the item.

The employee will send the robot, and the aisle will light up on the computer. The robot will collect the item and release it.  The cubbyhole will light up, and the employee can get the item. This means that a worker doesn’t necessarily need to leave his station.

Stickers and packaging are already done by robots, and this will directly enhance the efficiency of the company. Amazon estimates that the firm will increase efficiency by almost 50 percent. At the same time, they project that they will also reduce production costs significantly while not actually putting numbers to this estimate.

What this means to Employees

Contrary to popular belief that the company will lead to more jobs lost, looking at the numbers, they are in a better place to create better jobs. Efficiency almost always leads to growth, hence more jobs. Even the manufacturers of the robots will see growth in their industry. The employees will see a reduction in their workload, but an increase in their productivity levels. Amazon will definitely have a huge spike in their growth in 2017.