Waste Management, the Houston-headquartered waste and recycling giant, has announced plans to eliminate approximately 5,000 positions by 2026 as part of its ongoing transition toward automated operations. The company, which employed roughly 48,000 workers at the conclusion of 2023, is implementing these changes through a strategic approach of not filling specific positions as they become vacant.
The organization’s modernization efforts will impact various sectors of its workforce throughout 2025, with approximately 1,000 positions affected in the immediate future. This includes the elimination of 650 trucking roles through fleet modernization initiatives and a reduction of 350 recycling plant positions following facility upgrades.
Kelly Caplan, senior director of external communications, emphasized that this transformation is part of a carefully planned evolution rather than an immediate workforce reduction. The company is focusing on reducing its reliance on labor-intensive positions that have historically proven difficult to staff and maintain.
During a recent appearance on Jim Cramer’s show, Waste Management CEO Jim Fish highlighted the demographic challenges facing the industry. He noted that the average age of heavy equipment operators is approaching 53, making it increasingly challenging to find qualified personnel for truck driving and heavy equipment operation positions. Fish stressed that the company isn’t conducting layoffs but rather managing the transition through natural attrition, particularly in roles that experience turnover rates as high as 50%, such as those working on the rear of collection vehicles.
The company’s strategic shift toward automation is being implemented as a solution to persistent industry-wide recruitment and retention challenges. Waste Management views this technological transition as a necessary adaptation to mitigate business risks associated with high turnover rates in physically demanding positions.
This transformation comes as Waste Management continues to expand its service offerings. In 2024, the company made a significant move by acquiring Stericycle, a medical waste services provider based in Bannockburn, Illinois. This acquisition broadens Waste Management’s portfolio to include medical waste collection, compliance services, and secure information destruction capabilities.
The automation initiative represents a broader industry trend toward technological solutions in traditionally labor-intensive sectors. Rather than maintaining positions that are becoming increasingly difficult to fill, Waste Management is investing in automated systems that can perform these tasks more efficiently and consistently.
The company has emphasized that this transition is being managed thoughtfully, with a focus on long-term sustainability rather than immediate cost-cutting measures. The strategy aligns with
industry-wide efforts to modernize operations while addressing persistent staffing challenges that have affected the waste management sector for years.
The impact of these changes will be felt across North America, where Waste Management maintains extensive operations. The company’s approach to this transition reflects a careful balance between technological advancement and workforce management, with a clear focus on maintaining operational efficiency while adapting to changing labor market conditions.
This modernization effort represents one of the largest systematic transitions in the company’s recent history, reflecting both the challenges and opportunities present in the contemporary waste management industry. As the company moves forward with these changes, it continues to emphasize that the transition will be gradual and managed through natural attrition rather than forced reductions.