Logistics companies in the Philadelphia area lay off 188 employees due to canceled contracts with Amazon.
In a significant development affecting the local workforce, three logistics and third-party delivery companies in the Philadelphia area have collectively announced the layoffs of 188 employees due to contractual changes with Amazon. This decision highlights the evolving nature of partnerships within the logistics industry and underscores the challenges faced by delivery service providers.
CJB Logistics, a delivery service located on Elmwood Avenue in Philadelphia, has reported that it will initiate layoffs of 101 workers starting November 16. The layoffs stem from the company’s contract with Amazon, which has not been renewed. CJB Logistics, based in Chadds Ford, boasts an annual payroll of approximately .5 million. However, the company has not made any representatives available for comments regarding this situation.
Trujacodi Delivery Express has also been impacted, letting go of 42 employees as of September 12. This company confirmed that it has permanently ceased operations as an Amazon Delivery Service Partner (DSP). Efforts to reach Trujacodi for further details have been unsuccessful, as the provided contact information appears to be non-functional.
Amazon has acknowledged the exits of CJB Logistics and Trujacodi from its DSP program. A spokesperson for the company stated that Amazon is working to assist former employees from these companies in finding new roles within other Delivery Service Partners in the region, demonstrating a commitment to supporting affected workers during this transitional phase.
Additionally, National Fulfillment Services, also situated in the Philadelphia region, has announced the closure of its facility on Commerce Drive in Aston. Citing “changing business needs,” the company expects to lay off 45 employees effective November 15. Importantly, Amazon has stated that it does not have any association with National Fulfillment Services.
National Fulfillment Services has a long history, having originated in the 1970s as a software consulting firm. Over the years, it has evolved into providing comprehensive fulfillment solutions, combining warehousing and distribution services through data analysis.
The recent layoffs are indicative of broader trends within the logistics industry, particularly concerning Amazon’s review and alteration of its relationships with third-party service providers. Earlier this year, nearly 300 employees at a Burlington City-based logistics company were similarly affected when Amazon concluded a pilot program aimed at enhancing same-day delivery services. This has left many workers looking for alternatives as the demand and nature of delivery services continue to shift.
As the industry adapts to these changes, the repercussions will likely resonate throughout the local economy, prompting a need for agility among logistics firms and the workforce alike. The ongoing transformation within the sector emphasizes the necessity for companies to reassess their operational strategies in an increasingly competitive environment. Media News Source.
