- More than 3,200 Amazon delivery drivers will be laid off by the end of April, BuzzFeed News reported on Thursday.
- Amazon’s third-party delivery partners have announced thousands of layoffs in recent months as the company cuts ties with some of its contractors.
- Layoffs for more than 2,000 delivery employees were announced in October, and an Amazon Air Prime partner announced layoffs of nearly 3,000 workers in January and February.
- Despite the layoffs, Amazon’s delivery network is growing quickly as it hires small contractors.
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Thousands of Amazon delivery drivers have been laid off in recent months — and it looks as if many more workers will lose their jobs come spring.
More than 3,200 delivery drivers for Amazon will be laid off by the end of April, BuzzFeed News reported on Thursday.
Amazon has been cutting ties with some delivery contractors in recent months as it moves toward working with smaller, cheaper contractors, according to BuzzFeed News.
The 3,200 layoffs will come from several contractors and follow the layoffs of more than 2,000 drivers from Amazon’s delivery-service partners, or DSPs, announced in October. These partners typically work exclusively for Amazon to deliver packages to customers’ homes and businesses. The DSPs are in charge of drivers’ wages, insurance, health benefits, and vehicle maintenance.
The October layoffs included 900 workers in California and Texas from Letter Ride and more than 650 from Inpax in Georgia, North Carolina, Ohio, and Texas. Additionally, an Amazon Air Prime partner has announced layoffs of nearly 3,000 workers this year.
“Sometimes the companies we contract with to deliver packages do not meet our bar for safety, performance or working conditions,” an Amazon representative told Business Insider. “When that happens we have a responsibility to terminate those relationships and work to find new partners.”
Amazon gives laid-off workers the chance to apply for jobs with its other contractors. The representative said Amazon worked to “ensure there is zero or very little net job loss” in the communities where it operates.
But as BuzzFeed News reported, Amazon’s director of transportation compliance, Carey Richardson, recently said that usually no more than 60% of those workers are hired with other DSPs.
Despite the contractor layoffs, Amazon’s delivery network is growing quickly, Business Insider’s Hayley Peterson reported.
As of December, the company employed 800 third-party delivery partners that manage 75,000 drivers, it said. Amazon said it operated 150 delivery stations in the US that employed more than 90,000 workers.
The Amazon representative said that more than 300 new DSPs had started working with Amazon in the past six months, creating job opportunities for nearly 15,000 drivers.