TrueBlue, a staffing company that helps Amazon hire its warehouse and delivery workforce, is seeing less demand from the e-commerce giant, and says it could be a sign of the company going more in-house for work in those areas.Steve Cooper, CEO of TrueBlue, made those comments during the company's quarterly earnings call on Wednesday, adding it could impact companies like FedEx and UPS, which are Amazon's delivery partners, in the future.
He said:"The main thing I think is control and knowing that they are controlling their own processes more.
So in-sourcing previous things all the way to where they stand with UPS and FedEx and wanting to control delivery right to the customer.
So it's just part of a broader strategy that they've been implementing, and tested a few things here and there, but fairly quickly at the temporary labor aspect.
"Amazon, TrueBlue's largest customer, had already informed the staffing agency in the April quarter that it would be downsizing the use of its service in its US fulfillment centers.
But Amazon decided to further reduce its reliance on TrueBlue last quarter for workers in its sortation centers and delivery stations, Cooper said.As a result, TrueBlue's revenue from Amazon is expected to go down from $355 million last year to $165 million this year.