Abstract
Digital labor platforms are often praised for giving workers autonomy. Studies also show that these platforms use algorithms to closely manage workers and rely heavily on their reputation. Research suggests this as a trade-off between flexibility and control, leaving under-theorization of how digital systems change the underlying causes of worker alienation. Drawing on Marx’s theory of alienation and research on algorithmic management, this paper develops the concept of algorithmically mediated alienation. We argue that platform capitalism embeds authority within opaque computational systems, fragments labor into exchangeable micro-units, and mediates recognition through competitive rating architectures, thereby reconfiguring estrangement from process, product, social relations, and species-being. These mechanisms generate a recursive system in which structural dependency persists under the guise of formal autonomy. By refining alienation theory for digitally mediated work, the paper advances business ethics debates on autonomy, dignity, and moral agency in contemporary capitalism.