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Leaked Reports of Replacing 600,000 Workers by 2027 – Fact or Fiction?

Recent media reports have highlighted leaked internal Amazon documents suggesting an aggressive automation plan. According to The New York Times (as summarized by The Verge and other outlets), Amazon’s robotics strategy team outlined a goal to automate 75% of the company’s operations, potentially eliminating the need to hire about 160,000 U.S. roles by 2027theverge.com. By 2033, as Amazon’s sales volume is projected to double, the company hopes its robots could fill over 600,000 jobs that would otherwise have to be filled by human workerstheverge.com. In practical terms, this isn’t about firing 600,000 current employees, but rather avoiding that many new hires by using automation to handle the increased workload. The leaked documents estimate these automation efforts would save Amazon around $12.6 billion between 2025 and 2027, roughly $0.30 in cost savings per item deliveredtheverge.com. Such cost reduction is significant for Amazon’s high-volume, low-margin retail business, hence the interest in ramping up robotics.

Authenticity and Amazon’s Response: It’s important to note that these figures come from internal strategy documents and interviews reported by credible outlets (NYT, The Verge, Gizmodo). Amazon has not officially confirmed these specific targets, and in fact the company has pushed back on the report’s implications. An Amazon spokesperson, Kelly Nantel, stated that the leaked materials “reflect the perspective of just one team” and “don’t represent our overall hiring strategy… now or moving forward.”gizmodo.com. Amazon emphasized that such internal documents can be incomplete or outdated and that the company is actively hiring in its operations. (Indeed, Amazon announced plans to hire 250,000 people for the 2025 holiday season, underscoring that it’s still adding human workers in the near termgizmodo.com.) The company also denied instructing executives to avoid terms like “AI” or “automation” in public discussions – a tactic that the leaked report suggested was considered to soften public perceptiongizmodo.com. In other words, Amazon acknowledges it uses advanced technology but disputes the notion of a secret mandate to replace workers wholesale or to euphemize automation in bad faith.

Credibility of the Leak: The information originates from a New York Times investigation, lending it weight. Amazon’s response doesn’t deny the existence of these plans outright; rather, it contextualizes them as one scenario from one team. This suggests the documents are real, but they may represent a “what if” strategy or a long-term vision not yet adopted company-wide. Analysts note that Amazon is constantly experimenting with efficiency improvements, so it’s plausible such automation goals have been discussed internally. However, officially Amazon has not confirmed any plan to cut 600,000 jobs by 2027 (in fact, the 600k figure pertains to 2033 hires avoided, and ~160k by 2027). Thus, these reports are credible in origin but not officially acknowledged as policy by Amazongizmodo.comgizmodo.com. The story has drawn attention because it contrasts with Amazon’s public messaging that robots “work alongside” employees rather than replace them. As detailed below, Amazon’s broader automation strategy is indeed advancing rapidly – which gives context to why such a workforce impact is being projected by observers.

Amazon’s Automation and Robotics Strategy

Even if the exact “600,000 by 2027” figure isn’t officially confirmed, Amazon’s overall strategy clearly leans heavily into automation. Over the past decade, the company has invested billions in robotics, artificial intelligence, and other advanced technologies to streamline its operations. Here we examine the key components of Amazon’s automation strategy and recent progress, including the technologies involved and statements by Amazon’s leadership.

Automation in Warehouses and Fulfillment Centers

Robotic Fulfillment Systems: Amazon’s use of warehouse robots dates back to its 2012 acquisition of Kiva Systems, and it has accelerated since then. As of 2025, Amazon reportedly has over one million robots deployed in its facilities worldwidetheverge.comgizmodo.com. These include mobile drive-unit robots that zip around floors carrying shelves of products, robotic arms for sorting and packing, and other specialized machines. Amazon itself noted deploying its “one millionth robot” in July 2025, calling its fleet the world’s largest of industrial mobile robotstechspot.com. The company’s Robotics division produces machines like the Hercules and Pegasus bots (mobile units that lift shelves or convey packages), and Proteus, its first fully autonomous warehouse robot that can navigate around people on the flooraboutamazon.comaboutamazon.com. In late 2023, Amazon unveiled a new integrated robotic system called “Sequoia,” which combines mobile robots, gantry cranes, and robotic arms to handle storing and picking inventory much faster than a traditional setup. According to Amazon, the Sequoia system can store and retrieve products up to 75% faster than current methods, speeding up customer orders and reducing the need for workers to perform repetitive lifting or reachingaboutamazon.comaboutamazon.com.

Robotic Arms and AI Vision: Amazon has been developing robotic arms capable of handling individual items – a much harder task than moving shelves. Notably, it introduced Sparrow, an AI-powered robotic arm that can pick up individual products to sort them for packing. Sparrow is designed to identify and handle millions of different items using computer vision and machine learning. By taking over the “pick and place” tasks that humans typically do, Sparrow and similar robots can reduce the number of workers needed for item sorting, while theoretically letting human staff focus on more complex duties. In Amazon’s newest fulfillment centers, Sparrow is used to consolidate inventory into totes (bins) after orders are picked, a monotonous task that can be automatedaboutamazon.com. Amazon’s Chief Technologist for Robotics, Tye Brady, explained that advances in AI (artificial intelligence) have significantly improved robots’ capabilities, stating that AI gives robots something akin to “common sense” in physical tasks. He noted that AI and robotics together allow a “mind and body as one” – for example, computer vision systems enable robotic arms to recognize and grip diverse productsbusinessinsider.combusinessinsider.com. Brady emphasizes that these technologies are meant to assist employees: “We do technology with a purpose… as long as it improves the safety of our employees and their performance,” he told Insiderbusinessinsider.com. According to Brady, the goal is to have “people and technology working together,” with robots taking over tedious work and humans supervising or handling exceptions, maintenance, and more skilled tasksbusinessinsider.com. (Indeed, Amazon frequently uses the term “cobots” – collaborative robots – to describe machines working alongside humansgizmodo.com.)

Scale and Investment: The scale of Amazon’s automation investment is enormous. By early 2025 Amazon had at least 750,000 mobile robots actively working in warehouses (not counting other automated systems)businessinsider.com. Analysts at Morgan Stanley estimate that Amazon’s robotics push could save the company up to $10 billion annually by 2030 in labor and efficiency gainsbusinessinsider.com. Internal teams are aiming for that 75% automation of all operations, which would be a transformative shift in how fulfillment centers operategizmodo.com. Amazon has also created an Industrial Innovation Fund with $1 billion to invest in warehouse automation and AI startups, and it acquired companies like Canvas Robotics and Dispatch to bolster its capabilitiesbusinessinsider.com. The introduction of humanoid robots is on the horizon as well – Amazon has been testing “Digit,” a human-sized bipedal robot from Agility Robotics (a company Amazon invested in). Digit can walk and carry objects in ways that wheeled robots cannot, making it useful for tasks like tote handling or working in human-oriented spaces. Amazon announced in 2023 that it would begin pilot-testing Digit in its operations, aiming to see how a mobile, human-like robot could perform in the warehouse environmentaboutamazon.com. The very image of a two-legged robot working in an Amazon facility (one widely circulated photo shows Digit in a fulfillment center) has stoked public anxieties about fully automated warehouses. Amazon and Agility Robotics have been careful to claim these robots “won’t replace workers” but will take over dangerous or monotonous tasks, augmenting human workerstechspot.com. Nonetheless, the trajectory is clear: Amazon’s newest fulfillment center designs (e.g. the robotic FC in Shreveport, Louisiana) use about 1,000 robots and require roughly 25% fewer human workers to process the same volume of orders compared to older centersgizmodo.com. Amazon plans to replicate this highly-automated design in ~40 additional facilities by the end of 2027gizmodo.com. This indicates that while Amazon may not be laying off existing employees en masse, it is certainly aiming to do more with fewer workers per warehouse through automation.

AI and Data Optimization: Beyond physical robots, Amazon leverages artificial intelligence in numerous ways to optimize operations. CEO Andy Jassy noted that in Amazon’s fulfillment network, AI and machine learning models are used for inventory placement, demand forecasting, and routing of its robotic fleetaboutamazon.com. For example, Amazon developed a proprietary AI system called DeepFleet to manage robot traffic in warehouses – essentially a smart traffic-control system to coordinate thousands of robots efficiently and safelyaboutamazon.com. Such AI improvements have increased robot travel efficiency by ~10%, translating to faster deliveries and lower costsaboutamazon.comaboutamazon.com. Amazon also uses computer vision AI for quality control (e.g. checking packed orders or scanning for errors) and employs algorithms to dynamically allocate tasks between robots and humans. In its delivery operations, AI is used for optimizing delivery routes and even for vehicle maintenance – Amazon recently introduced an Automated Vehicle Inspection (AVI) system that uses computer vision to scan delivery vans for maintenance issues, reducing the manual inspection work drivers need to doaboutamazon.com. All these AI-driven initiatives contribute to making Amazon’s logistics more efficient, allowing the company to handle growing order volumes with relatively fewer additional staff.

Delivery Drones and Logistics Automation

Automation at Amazon isn’t confined to inside the warehouse. The company has long pursued innovations in delivery that could eventually reduce reliance on human drivers. One high-profile project is Amazon Prime Air, the drone delivery program. After years of development and regulatory hurdles, Amazon’s drones began limited commercial deliveries in late 2022. By 2023-2024, Prime Air was operating in two U.S. sites (in California and Texas) and had completed thousands of test flightsreuters.com. Amazon received FAA approval to test beyond-visual-line-of-sight drone operations in the U.S., and in late 2023 it announced plans to expand drone deliveries to new locations: customers in a third U.S. city as well as parts of the UK and Italy will have the option of drone-delivered packages starting in late 2024reuters.com. In fact, Amazon conducted its first drone test flights in Italy in Dec 2024 in preparation for a European Prime Air rolloutreuters.comreuters.com. The latest Prime Air drones (the MK30 model) can carry packages up to ~5 pounds and are equipped with advanced computer vision to detect and avoid obstacles (people, power lines, other aircraft) in flightreuters.com. Amazon’s vision is for these drones to be dispatched from delivery hubs or even directly from fulfillment centers, delivering orders in under an hour for nearby customers. Integrating drones into the delivery network could eventually mean some portion of last-mile deliveries (especially small, urgent items) are handled with zero human labor. That said, as of 2025, drone delivery remains in a trial stage, serving only a handful of areas. It will likely be a few more years before it makes a noticeable dent in Amazon’s vast delivery workforce.

In addition to drones, Amazon has explored ground-based autonomous delivery robots. Notably, it developed Amazon Scout, a cooler-sized sidewalk delivery robot, and tested it in a few neighborhoods. However, by 2022 Amazon scaled back the Scout program, indicating that the technology or customer reception fell short of expectations. The company stated it was “reorienting” the Scout project, and indeed much of that focus shifted toward aerial drones and other ways to automate delivery logistics. Amazon also owns Zoox, a startup building autonomous electric vehicles (originally envisioned as robo-taxis). While Zoox is not directly used for Amazon deliveries yet, its technology could inform future self-driving delivery vans or shuttles for Amazon. Furthermore, Amazon has been automating parts of its transportation network behind the scenes – for example, using algorithms to automate cargo loading plans, and investing in self-driving truck technology (it has partnerships/investments in firms like Aurora Innovation and others working on autonomous semi-trucks to haul freight). These initiatives align with Amazon’s long-term goal: faster and cheaper delivery with less dependence on manual labor.

Public Messaging from Amazon’s Leadership

Amazon’s top executives often acknowledge the dual nature of automation: it brings efficiency and cost savings, but it also raises concerns about job displacement. Amazon’s official line has been that robots and AI are tools to enhance their workforce, not replace it. For instance, Udit Madan, Amazon’s Vice President of Worldwide Operations, noted that Amazon has a history of reinvesting efficiency savings into new services and roles – he pointed out that savings from automation have helped Amazon expand into new areas (like opening more delivery stations in rural areas, which create new jobs)gizmodo.com. This implies Amazon sees automation as enabling growth rather than just pure staff cuts. Similarly, Tye Brady (Amazon Robotics CTO) has argued that automation will create more skilled technical jobs even as it eliminates some manual ones, saying workers can be redeployed to roles that “really matter” while robots handle drudgerybusinessinsider.com. He believes human judgment and “common sense” will remain in demand for the foreseeable future in running such complex operationsbusinessinsider.combusinessinsider.com.

At the highest levels, Amazon’s CEO Andy Jassy has been candid that AI advancements will indeed transform the workforce. In 2023, Jassy addressed employees about the impact of generative AI and automation, stating “we will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.” He predicted that over the next few years, as Amazon deploys AI agents and automation, it “will reduce our total corporate workforce” due to efficiency gainsaboutamazon.comaboutamazon.com. In context, Jassy was referring mainly to corporate and office roles (routine administrative or support tasks that AI can handle), but the sentiment applies broadly: Amazon expects certain job categories to shrink. Notably, Jassy also highlighted that Amazon had over 1,000 internal AI projects underway and urged employees to embrace these tools – a sign that Amazon is doubling down on tech-driven productivity. In public forums, former CEO Jeff Bezos and other Amazon execs have often said that while automation can be scary, it is an extension of the kind of innovation Amazon has always pursued to better serve customers. They often stress retraining workers; for example, Amazon touts programs like Career Choice and an upskilling initiative that, by Amazon’s claims, has trained over 700,000 employees in skills for new tech roles (e.g. robotics maintenance, IT support) since 2019aboutamazon.comaboutamazon.com. This is part of Amazon’s effort to present automation as a net positive – increasing safety, creating higher-paying tech jobs, and enabling the company’s growth – even as critics worry about job losses.

In summary, Amazon’s strategy is clearly to automate as many tasks as possible across fulfillment and delivery, thereby handling more volume with fewer incremental workers. While Amazon’s PR avoids framing it as “replacing workers,” the internal goal of 75% automation indicates a massive shift in how work gets done. The authenticity of the “600,000 jobs by 2027” claim is partially validated by these initiatives, though Amazon has not officially confirmed such a number or timeline. Next, we examine what these changes mean for Amazon’s workforce in various roles.

Impact on Amazon’s Workforce: Warehouse Workers, Fulfillment Staff, and Drivers

The rise of robotics and AI at Amazon is already reshaping work in its warehouses and could soon affect delivery roles. Here we assess the potential and ongoing impacts on key job categories:

Warehouse and Fulfillment Center Employees

Productivity vs. Headcount: Amazon’s fulfillment centers (FCs) employ hundreds of thousands of people in roles like stowing inventory, picking items for orders, packing boxes, and moving goods. These are exactly the areas where Amazon has deployed the most automation. The immediate impact has been a change in the nature of the work and a gradual reduction in the number of workers needed per unit of output. For example, at the advanced robotic site in Shreveport, LA, the integration of roughly 1,000 robots allowed Amazon to operate with about 25% fewer warehouse staff than a comparable non-automated facilitygizmodo.com. By 2025, Amazon was on track to replicate this model in dozens of new warehouses, which implies that as new centers come online or older ones are retrofitted, the company can fulfill more orders without a proportional increase in human staff. The leaked documents’ projection – keeping headcount roughly flat while doubling sales by 2033 – exemplifies this trendgizmodo.com.

Shifting Job Duties: For existing warehouse employees, the day-to-day job is evolving. Rather than walking miles of aisles to pick items, many workers now stand at stations where robots bring shelves (“pods”) to them. Instead of lifting heavy loads, they supervise robotic lifters. Amazon claims this reduces strenuous manual labor and repetitive motions, potentially improving safety. Indeed, Amazon released data showing lower injury rates at robotic facilities compared to traditional ones, attributing a 15–18% reduction in certain injury rates to automation improvements and ergonomic workstation designsaboutamazon.com. While this may be true, it’s also clear that one worker can now handle more volume with robotic assistance than before. Tasks like packing boxes have already been partially automated – Amazon has introduced automatic packing machines that can box up orders; each such machine can reportedly do the work of 20+ human packers (as reported in a 2019 Reuters piece) – meaning those packing roles are gradually phased out via attrition or redeployment. In 2023–2024, Amazon also rolled out Sequoia systems where an employee stays in one place and robots deliver bins of products to them for picking, which eliminates the need for that worker to perform lots of bending or reachingaboutamazon.com. However, one Sequoia-equipped station can potentially handle more throughput than a manual picker, again hinting that fewer workers can handle the same workload after these upgrades.

Job Creation in Tech Roles: On the flip side, automation is creating new types of jobs within the fulfillment network. Robots require maintenance, programming, and oversight. Amazon has had to hire more equipment technicians, robotics engineers, and IT support staff for its high-tech warehouses. Notably, Amazon said its highly automated Shreveport fulfillment center requires about 30% more employees in technical maintenance and engineering roles than a traditional warehouse wouldaboutamazon.com. These are higher-skilled positions responsible for keeping the machines running. To fill roles like Robotics Technician or Process Engineer, Amazon often retrains some of its workforce – hence programs upskilling hundreds of thousands of workers for career paths in tech or skilled tradesaboutamazon.comaboutamazon.com. In an ideal scenario, a portion of former pickers or packers can become robot operators or maintenance techs. However, the number of such new tech jobs is far smaller than the entry-level jobs automation can replace. Thus, while some workers may transition to higher-skilled jobs, others may find their old positions not needed over time. Amazon’s automation team lead acknowledged that these advancements will change jobs, but framed it as moving people into more interesting, skilled work rather than eliminating work entirelybusinessinsider.com. The reality is likely a mix: fewer total workers will be needed in fulfillment, and those who remain will supervise or support an automated workflow instead of doing all tasks manually. For current employees, Amazon has pledged that “no one will lose their job because of automation” and that attrition or growth will absorb changes. Yet if the leaked targets (75% automation) are met, the growth of fulfillment center jobs will slow dramatically, and some roles (like inventory counters, packers, sorters) may not be added in the same numbers as before. An external expert, MIT economist Daron Acemoglu, cautioned that if Amazon achieves its full automation ambitions, it could become a “net job destroyer” – meaning the company would cut more jobs than it creates, a stark shift for one of America’s largest employerstheverge.com. In summary, warehouse employees are seeing their jobs redefined by robots; many will work with machines, but the total number of such jobs per warehouse is poised to decline or at least grow much more slowly going forward.

Delivery Drivers and Last-Mile Roles

Amazon’s army of delivery drivers – many working for Amazon’s Delivery Service Partners (DSPs) or as contractors – is another major segment of its workforce. Any automation in the “last mile” of delivery could significantly impact these jobs. So far, fully replacing drivers with robots or drones at scale has not happened, but Amazon is actively trialing technologies that could reduce the need for human drivers in the future. The most immediate is the Prime Air drone delivery program. Drones, once regulatory and technical challenges are overcome, could handle a portion of small-package deliveries, especially in suburban or rural areas where they can fly directly to a customer’s yard. If Amazon’s drone rollout succeeds and expands nationwide, it could gradually chip away at the volume of deliveries handled by people. However, current drones carry only small items (under ~5 lbs) and have limited range, so traditional drivers and trucks will remain essential for most orders in the near term. Amazon has set a goal to make 10,000 drone deliveries by 2024 in pilot areas, and then scale up from theredronedj.com. This suggests only a tiny fraction of the millions of packages Amazon delivers daily would be drone-delivered in the mid-2020s, but the share could grow over time. Drones could particularly reduce the need for drivers in remote areas (where one drone can cover a region more efficiently than a truck driving many miles for a single package).

On the ground, Amazon’s now-halted Scout robot experiment indicated the company’s interest in automated home delivery. While Scout robots won’t be rolling down sidewalks anytime soon (the program was shelved in 2022), Amazon is undoubtedly watching or funding other forms of automation in transport. The company’s investment in autonomous vehicle technology (via subsidiaries like Zoox and partnerships with self-driving truck startups) signals a long-term plan where eventually delivery vans or long-haul trucks could drive themselves. If, say, in 5–10 years self-driving electric vans become viable for package delivery, Amazon could operate delivery routes with far fewer drivers – maybe having drivers only do the tricky portions like unloading at the doorstep, or even automating that with drone deployment from the van or other mechanisms. For now, those scenarios are experimental. In 2023, Amazon expanded its use of electric delivery vans (EVs) from Rivian (over 10,000 EVs now in service)aboutamazon.com, which still require human drivers but are a platform that could potentially be outfitted with self-driving tech in the future. Amazon is also using more automation in distribution centers and delivery stations (the facilities where packages are sorted and loaded for last-mile delivery). Robotic arms and conveyors at these sites reduce the manual sorting work, indirectly affecting roles like package sorters.

Near-Term Impact on Drivers: In the immediate future (the next 2–3 years), Amazon’s delivery drivers likely won’t see major job losses due to automation – the scale of drone delivery is too small, and self-driving vehicles are not ready for mass deployment. Amazon continues to hire thousands of seasonal delivery drivers, indicating these roles remain in demand. However, if we extend the horizon to the end of this decade, the potential impact grows. A successful drone program could mean tens of thousands of deliveries a day done by machines. Self-driving trucks might handle middle-mile routes between warehouses, affecting roles for truck drivers and third-party carriers. The leaked Amazon automation plan explicitly focused on warehouse roles, but it stands to reason that Amazon’s efficiency push will extend to delivery once the technology matures. Drivers perform a lot of repetitive, time-sensitive tasks – exactly the kind of work ripe for automation when feasible.

That said, delivering to someone’s doorstep has many variables (traffic, finding the address, ringing doors, etc.), and customers often value the human element (for handoff or problem-solving). Amazon might therefore shift driver roles into more customer-service-oriented ones for more complex deliveries, while automating simpler drop-offs. Also, new roles could emerge such as remote drone operators, fleet maintenance crews for robots/vehicles, and logistics coordinators for an automated fleet, which some current drivers could transition into. Amazon’s mention of “integrating drones into the delivery network” suggests in the future a driver might manage a truck that deploys drones for some packages, effectively supervising multiple deliveries at onceaboutamazon.comaboutamazon.com. In any case, the long-term trajectory points to fewer driving jobs if and when technology permits. Amazon’s leadership has indirectly acknowledged this; for example, Andy Jassy’s comments about needing fewer people in roles that can be automated would include certain transportation jobs once AI and robotics are capable enoughaboutamazon.com. For now, though, delivery driver jobs at Amazon are still growing alongside e-commerce demand, and significant displacement (like replacing hundreds of thousands of drivers) appears to be several years away at minimum.

Broader Labor Implications

In a broader sense, Amazon’s automation drive is a bellwether for the industry. Amazon is the second-largest private employer in the U.S. (over 1.5 million employees globally, with about 1.2 million in the U.S. as of 2023)gizmodo.com. If Amazon successfully navigates automating a large chunk of its fulfillment and delivery operations, other retailers and logistics companies (Walmart, UPS, FedEx, etc.) are likely to follow suitgizmodo.com. This could affect not just Amazon’s workforce but the entire labor market for warehousing and delivery jobs, which have been a significant source of entry-level employment. Some economists argue that while automation will improve productivity, it may worsen inequality by reducing the number of low-skill jobs and increasing demand only for high-skill tech jobs and a smaller number of maintenance roles. Amazon has tried to preempt criticism by highlighting positive impacts: safer workplaces, new tech employment opportunities, and community investments. For instance, the leaked documents indicated Amazon considered participating in more community projects (parades, charity drives) to bolster its image as a “good corporate citizen” amid potential backlash to job cutsgizmodo.com. This suggests Amazon is well aware of the social and PR ramifications of automating at such scale.

In conclusion, the reports of Amazon planning to replace hundreds of thousands of workers with robots by 2027 are based on real internal analyses, but Amazon’s official stance tempers that narrative, asserting it will continue to hire and that automation is only one part of its strategygizmodo.com. What’s clear, though, is that Amazon’s broader strategy is to heavily leverage robotics, AI, and advanced technology to boost efficiency across warehouses and delivery. The company has made huge strides in deploying warehouse robots, AI-driven optimization, and is testing drones and other innovations that could eventually displace certain job functions. The impact on Amazon’s workforce is already being felt in fulfillment centers, where robots are handling more work – reducing the need for as many human pickers and packers – even as some new technical jobs are created to support this automation. Delivery roles, for now, remain largely human, but Amazon’s investments signal an intent to automate portions of that in the future (drones being the first example).

Overall, while Amazon is not publicly proclaiming “600,000 jobs cut,” it is unmistakably moving toward a more automated future. The authenticity of the leaked goal is backed by Amazon’s rapid progress in technology – though Amazon frames it as avoiding future hires rather than laying off existing staff. Stakeholders will be watching how Amazon balances innovation with employment. As one expert noted, Amazon has perhaps the strongest incentive in the industry to automate, and if it finds profitable ways to do so, those practices will likely spread economy-widetheverge.com. The coming years up to 2027 and beyond will reveal how much of Amazon’s operation can be handed over to robots and what that means for the men and women who have traditionally done that work.

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