More than 350 workers in Massachusetts are expected to lose their jobs after Amazon cut contracts with several local-delivery companies.
Amazon, the Seattle-based e-commerce giant (Nasdaq: AMZN), recently ended contracts such delivery companies as Courier Distribution Systems LLC, which told state labor officials it plans to lay off 238 people in Massachusetts. Amazon calls its contractors "delivery service partners," independent companies that deliver packages from an Amazon-operated distribution facility.
Two other companies, Systemize Logistics and JST Transportation, also filed Worker Adjustment and Retraining Notification (WARN) Act notices with state labor officials indicating likely layoffs.
Georgia-based last-mile delivery company Courier Distribution Systems filed notices indicating it would lay off 102 people in Milford and 136 people in Everett and Dedham. The company also plans to cut jobs in Philadelphia and at a warehouse near Pittsburgh.
Stoughton-based Systemize Logistics reported 71 layoffs in Milford, while JST Transportation, which has offices in Franklin, reported 51 layoffs, also in Milford.
The companies did not immediately respond to requests for comment.
“We work with a variety of carrier partners to get packages to Amazon customers, and we regularly evaluate our partnerships,” an Amazon spokesperson said in a statement. “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 has been cutting ties with companies all across the U.S., resulting in the loss of thousands of jobs in the last several months, CNBC reported.
In a blog post published last week, Amazon said it had more than 1,300 delivery service partners operating in five countries throughout North America and Europe. These last-mile delivery services have generated more than $4.5 billion in revenue through Amazon's partnership program since it launched in 2018, according to the post.
The online shopping and delivery giant has recently been snapping up leases on buildings throughout Massachusetts, picking up warehouse spaces to accommodate distribution centers.
In June, Amazon Logistics, which is part of Amazon, announced it was expanding its network of last-mile delivery stations in Massachusetts with eight new leases in Bellingham, Boston, Hingham, Mansfield, Middleborough, Revere, Taunton and Wilmington.
The Revere delivery station, which started operating in July, is better known as the former headquarters of local candy maker NECCO.
