More than 1,200 Amazon delivery drivers have been laid off in recent months after the company cut contracts with a number of small delivery companies across the country.
Amazon informed at least seven firms that are a part of its Delivery Service Partner (DSP) program that it was severing their contracts. The businesses reported that nearly 1,205 drivers will be laid off and the closing of the WARN filings sent to state authorities this month and in recent months.
Amazon’s DSP system, unveiled in 2018, has made it possible for the company to rapidly improve its last-mile distribution capabilities and compete with shipping partners including UPS and FedEx.While Amazon continues to cull poor-performing delivery partners, the program has grown quickly since it launched two years ago. There are now more than 1,300 DSPs across five countries that have added 85,000 jobs and delivered more than 1.8 billion packages worldwide, according to the company
“This comes as an entire shock to our company as an entire and that i can assure you that the choice wasn’t supported performance,” the corporate said during a notice to employees received by CNBC. “We will be continuing to run routes as normal to provide service to Amazon through July 18, 2020.“