Amazon Delivery Contractor Cuts 120 Jobs After Losing Sole Client

A delivery contractor serving Amazon exclusively laid off 120 workers after losing its only client, according to a report published by Inc. on June 18, 2025. The company, identified as Silver Star Delivery Solutions LLC of New Jersey, filed a WARN notice with the state Department of Labor and Workforce Development on June 6, listing the cut as permanent and effective June 13.

The WARN filing places the layoff at a logistics hub in Edison, New Jersey. Under the federal Worker Adjustment and Retraining Notification Act, employers with 100 or more workers must give 60 days' notice before mass layoffs or plant closures. Silver Star's filing, submitted roughly one week before the effective date, indicates the company claimed a WARN exception, which typically applies when a company loses its only major client unexpectedly.

Silver Star's business model depended entirely on one relationship. The company operated as a delivery service partner, or DSP, a program Amazon launched in 2018 that contracts small businesses to run last-mile delivery routes using Amazon's vans, uniforms, and routing software. Amazon recruits entrepreneurs into the program, sets operational standards, and controls daily route assignments. DSPs, in turn, hire and manage their own drivers.

That structure concentrates risk. When Amazon ends a DSP contract, the small business loses its entire revenue base at once, and its employees lose their jobs in a single action. The 120 workers in Edison experienced exactly that sequence: one termination decision by one client eliminated every position at the site.

For drivers and dispatchers in the logistics sector, the case illustrates a specific due-diligence step worth taking before accepting a job with a subcontractor: check how many clients the employer serves. A company whose revenue comes entirely from one contract carries a different risk profile than one with diversified customers, even when the pay and daily work are identical. State corporate registries and job postings often reveal client concentration, and WARN databases maintained by state labor departments show whether an employer has cut staff before.

The affected workers face a logistics job market that has cooled from its pandemic-era peak. Amazon itself has slowed hiring across its network as it restructures its delivery operations, and the company announced in late 2024 that it would reassess its office staffing levels, though the Edison layoffs stem from a DSP-level decision rather than a direct Amazon workforce reduction.

Workers laid off in the June 13 action can file for unemployment insurance through the New Jersey Department of Labor, and the WARN notice itself serves as documentation of the job loss. New Jersey's unemployment rate stood at 4.6 percent in April 2025, according to the U.S. Bureau of Labor Statistics, meaning displaced logistics workers are entering a state labor market with moderate overall slack but continued demand for delivery and warehouse roles during peak seasons.

Silver Star's WARN filing does not indicate whether the workers will be rehired by another DSP taking over the routes. In past cases where Amazon has shifted routes between contractors, drivers have sometimes been recruited by the incoming company, but no such arrangement is confirmed in this instance. The New Jersey Department of Labor lists the Silver Star notice as permanent, which means affected workers should plan for a full job search rather than a short furlough.