Amazon to cut hundreds of jobs in South Jersey as it phases out delivery model experiment.

In a significant development for the local workforce, nearly 300 delivery-service contractors are facing layoffs in South Jersey as Amazon terminates a logistics pilot program. This initiative, which was designed to facilitate same-day delivery using Kia Soul vehicles in partnership with emerging delivery companies, is set to conclude in September.

The company, KRP Transport LLC, located in Burlington City, has announced that 298 employees will be let go on September 25. This figure includes two dispatchers and 196 delivery associates, as stated in a layoff notice filed with state authorities. These workers primarily provided “last-mile delivery” services, a critical component of package logistics.

The Philadelphia Business Journal was among the first outlets to report on this impending job loss. The decision to discontinue the program comes as Amazon moves away from the use of contracted delivery partners like KRP, favoring instead a model that relies on gig workers who utilize their own vehicles for deliveries. This shift in strategy reflects ongoing changes in Amazon’s logistics and delivery operations, as the company seeks to streamline its processes and improve efficiency.

While the layoffs signal significant changes for KRP’s workforce, customers are not expected to experience any disruption in service. Amazon has confirmed that the Kia vehicles used in the program will be returned to the rental vendor.

An Amazon spokesperson noted that the company continually seeks to innovate its delivery network, citing the need for adjustments based on customer feedback gathered over the past year. As a result, it was determined that the current Delivery Service Partner model was not the ideal fit for the same-day delivery operations, prompting this shift.

Despite these layoffs, Amazon has reiterated its commitment to the Delivery Service Partner program, which has enabled the establishment of over 4,400 delivery businesses since its launch in 2018. While many contractors have thrived, challenges related to meeting stringent delivery expectations have also been reported, leading to a complex dynamic within the outsourcing framework.

In light of the layoffs, Amazon has pledged to assist affected employees in finding new opportunities with other delivery contractors. The company has expressed gratitude for the contributions made by KRP and its team, acknowledging their role in the broader logistics network.

KRP Transport LLC will continue its partnership with Amazon through a separate delivery facility in Kearny, New Jersey, where new job listings for Amazon Delivery Service Partner Drivers are already being advertised. Positions offered come with competitive wages and an array of benefits, including health insurance and paid time off.

This latest adjustment in Amazon’s operational strategy occurs alongside the company’s ongoing expansion in the Philadelphia area, which recently included a commitment to invest billion in new data centers across Pennsylvania. The company has also seen substantial growth in its warehouse infrastructure in the region, doubling its operations during the pandemic and posting extensive job listings.

As the logistics landscape evolves, the implications of such structural adjustments will continue to resonate within the local employment market and the broader service network.