Waste Management Reducing 5,000 Jobs Through Attrition by 2026, Will Lean on Technology

Waste Management is eliminating thousands of jobs by the end of 2026 as part of a five-year plan from 2022 to 2026. The environmental services company reportedly plans to lean more on automation and technology instead of physical labor.

Multiple WM jobs that have been vacated will not be filled, according to Kelly Kaplan, senior director of external communications. A total of 5,000 positions will be cut by next year.

“Our average heavy equipment operator is approaching 53 years old. It becomes difficult to find folks to drive a truck or to work on a piece of heavy equipment,” said Waste Management CEO Jim Fish on CNBC’s “Mad Money.” “So, this is almost by necessity that we’re using technology to replace difficult-to-hire roles.”

However, the elimination of job functions does not mean the company is laying anyone off. Fish noted on the show that many of the positions have a high turnover rate, meaning employment positions are being eliminated through attrition. When someone leaves one of those jobs, Waste Management simply does not hire a replacement.

Some of the roles — specifically those working at the back of the truck — have a turnover rate as high as 50%, according to Fish.

Waste Management’s Savings and Innovation Plans

Not rehiring for certain vacant positions is one part of Waste Management’s aggressive plan to cut costs. The goal is to save $450 million. Any money saved will be reinvested in energy plants and returned to shareholders as profit.

Over the next several years, WM plans to invest another half a billion dollars in artificial intelligence and improved logistics. Some companies, like Binit, are already revolutionizing waste management with AI integration.

Last month, Waste Management reported that revenue surged 13% to $5.89 billion in the fourth quarter of 2024. Full-year revenue jumped 8%, reaching $22.06 billion.

According to Fish, multiple factors played a part in WM’s success, especially with the company’s recent acquisitions. Stericycle, which specializes in medical waste and secure information destruction services, was acquired by Waste Management for a little over $7 billion in 2024, opening up new opportunities for WM.

Currently, Waste Management employs about 48,000 full-time people worldwide. It’s unclear which jobs are being eliminated, but speculation suggests that mostly trucking positions and various roles at recycling plants will be gone via technology.