UPDATED 12:38 EDT / JULY 11 2019

POLICY

Amid automation efforts, Amazon pledges $700M to retrain 100,000 workers

Amazon.com Inc. today committed $700 million to help 100,000 employees, or about a third of its U.S. workforce, move into high-growth fields such as data science and software development.

The Upskilling 2025 initiative is launching seven months after the company introduced a $15 minimum wage for its 350,000-plus stateside staffers. That move primarily benefited workers in Amazon’s  fulfillment centers and broader logistics network. Amazon is targeting the same employees with Upskilling 2025, which will expand its existing training programs as well as add new ones.

First, the new programs: The company is rolling out Amazon Technical Academy and Associate2Tech, free education tracks that will enable nontechnical employees to pursue careers in programming and information technology support, respectively. Associate2Tech will see Amazon pay for certification tests so participants can earn industry-recognized professional credentials.

The company is also adding new programs for workers who already have existing technical know-how. Machine Learning University is a course taught by Amazon’s artificial intelligence engineers, while AWS Training and Certification will enable participants to learn the ropes of using the company’s cloud platform. Amazon is also expanding its two existing training initiatives, Amazon Apprenticeship and Career Choice.

“While many of our employees want to build their careers here, for others it might be a stepping stone to different aspirations,” Beth Galetti, Amazon’s  senior vice president of human resources, said in a statement. “We think it’s important to invest in our employees, and to help them gain new skills and create a more professional options for themselves.”

Upskilling 2025 is not focused exclusively on technology training. According to Amazon, workers will also have opportunities to pick up skills for other in-demand roles, such as logistics coordinator, process improvement manager and business analyst.

“This is an excellent move for Amazon, which has recently come under fire by politicians and activists about substandard working conditions,” Arran Stewart, co-founder of recruitment platform Job.com Inc., told SiliconANGLE. “By offering these benefits to the portion of their workforce which is least upwardly mobile these workers will be more effective and productive, both in and outside of Amazon.”

Amazon’s $700 million investment in employee training comes as it also broadens efforts to its automate operations. In May, Reuters reported that the company is installing new robots at its warehouses that can take over the task of boxing up orders from employees. The machines could eliminate an estimated 1,300 positions across Amazon’s U.S. fulfillment centers.

The company is also pursuing longer-term projects, such as delivery drones and robotic couriers, that may eventually reduce its dependence on human delivery drivers. Amazon’s investment in this area will likely only grow as it continues streamlining supply chain operations. The company is currently working to reduce the two-day free shipping it offers Prime members to one day and has started providing one-hour grocery delivery in some areas. 

Photo: Amazon

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