Additional layoffs were announced yesterday, February 18th, 2020 as dozens of Amazon contractors notify state agencies of their closing.
Bear Down Logistics had previously announced that nearly 400 workers would cut in OH, VA, MI and IL and today notified the state of Wisconsin that an additional 95 employees would be cut from their Sussex, Wisconsin facility.
There are additional cuts expected in in several other states as companies plan on just how to exit as Amazon cancels their delivery contracts in favor of their “2.0 DSP Program,” sources tell Freight Broker Live.
As mentioned in our earlier article, these most recent layoffs are part of a purge of some of the largest “Legacy DSP’s” who have been handling deliveries throughout the United States for years. Sources who wish to remain anonymous, tell Freight Broker Live they started to realize what Amazon’s plan was several months ago as the frequency of available runs decreased and they began seeing more of the “2.0 DSP’s” appearing at the distribution centers.
These latest cuts bring the total of contractor workers cut to over 7,100 as Amazon purges its legacy providers with the cheaper “2.0” franchise program providers and as Amazon looks to in-source its operations.