Amazon, Fourth Largest U.S. Retail Employer, May Become Big Job Killer

Amazon is currently holding a multi-city job fair where it is expected to hire more than 50,000 people for retail jobs. But, in what seems to be a paradox, the company is also steadily employing robots at its plants and is developing technology which would one day take over these jobs, and replace humans at its warehouses.

The company, which has given retail giants such as Walmart and Kroger a run for their money is the fourth largest retail employer in the U.S. Walmart leads in terms of jobs, with 2.3 million employees on its rolls, Kroger comes in second with 443,000 employees and Home Depot is on third place with 406,000 staffers. Amazon currently employs 341,000 employees, but is looking to hire more, which could soon push it to number three.

Read : Walmart Plans To Create 1.5 Million Jobs, Unveils Manufacturing Strategy

The company is also offering good incentives — a minimum wage of $14 along with health insurance, retirement savings plan and stock awards, which is why thousands of people are queuing up for positions at its fulfillment centers.

While the rate of hiring at Amazon is currently high, it may not always remain so. Brittain Ladd, a supply chain consultant who worked on Amazon’s push towards grocery retail, told Bloomberg in June — post the company’s acquisition of Whole Foods — that it is working on building automated warehouses for its grocery business. Not just that, Amazon has also revealed its initiatives such as Amazon Fresh which will use robots, app interfaces and automation to reduce labor costs.

While the company currently has a business model with a mix of robots and humans, the technology it is developing and the rate at which it is advancing such technologies could start obliterating human-dependent jobs soon. The company hosted a contest in May in which it offered a $250,000 reward to the team which makes the most advanced robot for its warehouses.

An Australian team won the contest with a custom-built Cartesian robot called Cartman which will pick up and stow away boxes.

Amazon is also working on artificial intelligence development and has invested $227.8 million in 1,178 AI jobs, according to Forbes.

Read: AmazonFresh Pickup: Drive-In Grocery Store For Prime Members Announced

"Much of what we do with machine learning happens beneath the surface. Machine learning drives our algorithms for demand forecasting, product search ranking, product and deals recommendations, merchandising placements, fraud detection, translations, and much more. Though less visible, much of the impact of machine learning will be of this type – quietly but meaningfully improving core operations," Amazon CEO Jeff Bezos wrote in an annual shareholder letter last year.

Amazon’s basic focus lies in delivering retail items to customers as fast as possible and in pursuance of this endeavor, its reliance on robots and automation is expected to increase over time. It is developing lower cost structures and trying to lower prices at an unprecedented rate and will take everything in its path that accelerates this process. As the company moves forward in this direction, jobs might be obliterated rather than created.