Amazon cuts ties with several U.S. delivery contractors

An independent contractor places Amazon Prime groceries into a cart at a Whole Foods Market in Silver Spring, Md., on March 31. File Photo by Kevin Dietsch/UPI

Aug. 13 (UPI) — Retailer Amazon has ended contracts with several small delivery companies in the United States, which resulted in more than 1,200 layoffs.

Since 2018, Amazon had contracted the third-party companies to deliver packages, competing in the process with couriers like FedEx and the UPS. Amazon revealed its plans in Worker Adjustment and Retraining Notifications in multiple states.

The WARN Act requires companies like Amazon to provide advance notices, usually 60 days, in case of layoffs or plant closings. Courier Distribution Systems, of King of Prussia, Pa., for example, will lay off dozens of workers later this month, according to the Pennsylvania WARN Act website.

Systemize Logistics, in Massachusetts, is closing locations in Connecticut and New York. CNBC reported that at least 1,200 drivers will lose jobs, based on WARN filings.

“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,” an Amazon representative told the network.

Amazon said it evaluates partnerships on a routine basis so the layoffs should not be seen as unusual.

Amazon said in a blog post last week its delivery partnership program created 85,000 jobs and aided some 1,300 small businesses in the United States, Britain, Canada, Spain and Germany.

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