Amazon cuts delivery contract jobs with 7 companies
1,205 drivers will lose their jobs over the next few months
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More than 1,200 Amazon delivery drivers are slated to lose their jobs within the next few months after the shopping behemoth cut ties with small delivery companies across the country.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 201.70 | -0.91 | -0.45% |
Seven companies, part of Amazon's Delivery Service Partner program, announced in Worker Adjustment and Retraining Notification (WARN) filings in New York, Connecticut, and Pennsylvania that they would be letting go 1,205 drivers.
The WARN ACT requires companies to give notice within 60 days prior to closing plants and issuing widespread layoffs.
An Amazon Prime delivery driver in Pacifica California on May 11, 2020 (iStock)
In a statement to FOX Business, Amazon declined to comment on the number of job losses but did confirm some partnerships were ending.
“We work with a variety of carrier partners to get packages to Amazon customers and we regularly evaluate our partnerships. We have ended relationships with some partners and Amazon is working closely with all impacted drivers to ensure they find opportunities to deliver Amazon packages with other local Delivery Service Partners with little to no disruption to pay.”
Amazon said reports of station closings as a result of the layoffs were incorrect.
In 2018, Amazon launched the program, taking a bite out of the U.S. package-delivery business long dominated by UPS and FedEx. By December 2019, there were more than 800 Amazon Delivery Service Partners in the last-mile network, employing 75,000 drivers in the United States.
As part of the widespread cuts, Sheffield Express, LLC will lay off 95 workers in Bristol, Conn., by Sept. 30.
Systemize Logistics and TL Transportation, LLC will lay off 144 workers within October and November.
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Courier Distribution Systems, LLC, Deliverol Global, Inc, TLT Transportation, and Prime EFS LLC will let go of almost 300 workers between August and October, according to the notices.
CNBC was first to report the cuts.