More than 1,200 Amazon delivery drivers are likely to lose their jobs within the next few months after buying the behemoth cut ties with small distribution companies across the country.
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Seven companies, part of Amazon’s Service Delivery program, announced in the Labor Arrangement and Notice Reassessment (WARN) registrations in New York, Connecticut and Pennsylvania that they would let 1,205 drivers go.
WARN ACT requires companies to notify within 60 days prior to plant closures and the release of widespread leave.
In a statement to FOX Business, Amazon declined to comment on the number of job losses, but confirmed that some partnerships were ending.
“We work with a variety of carrier partners to receive packages for customers on Amazon and regularly evaluate our partnerships. We have completed relationships with several partners and Amazon is working closely with all influential executives to ensure they find opportunities for offer Amazon packages with other local delivery service partners with little or no hassle to pay. “
Amazon said reports of the stations closing as a result of the layoffs were inaccurate.
In 2018, Amazon launched the program, taking a bite out of the package distribution business in the US, long dominated by UPS and FedEx. As of December 2019, there were more than 800 delivery service partners on Amazon in the last mile network, employing 75,000 drivers in the United States.
As part of the widespread layoffs, Sheffield Express, LLC will lay off 95 workers in Bristol, Conn., By September 30th.
Systemize Logistics and Transport TL, LLC will lay off 144 employees within October and November.
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Courier Distribution Systems, LLC, Deliverol Global, Inc., TLT Transport, and Prime EFS LLC will lay off nearly 300 workers between August and October, according to announcements.
CNBC was the first to report the cuts.
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