DHL to close Southern California warehouse, lay off 346 workers

Competitor UPS plans to close small Wisconsin facility

DHL Supply Chain manages warehouses, freight transportation and e-commerce fulfillment for business. (Photo: Jim Allen/FreightWaves)

The contract logistics unit of DHL will lay off 346 workers and close a distribution center in Ontario, California, by the end of August, according to a notice the company filed with California’s Employment Development Department. 

DHL Supply Chain is leaving the warehouse because an undisclosed customer is relocating part of its distribution operations, spokeswoman Marcia McLaughlin confirmed in an email. The facility will begin to wind down operations on July 1. 

“DHL Supply Chain has been informed that one of its customers will be relocating a part of their distribution operations. As a result, the warehouse facility that supports their operations in Ontario, California. will begin phasing down July 2025 and will close August 2025. DHL Supply Chain is not at liberty to disclose information about its customer’s operations.

The Orange County Register was first to report the job cuts


The Worker Adjustment and Retraining Notification Act notice said jobs being eliminated include 222 order filler pickers, suggesting the facility served as an e-commerce fulfillment center for a retailer.

In related news, the Milwaukee Journal Sentinel is reporting that DHL rival UPS will close a package facility in Holmen, Wisconsin, a city in LaCrosse County, on June 10 and lay off 42 workers. 

The closure is part of a multiyear campaign begun last year to streamline the package delivery network by consolidating sortation centers with lower parcel volumes and using more automation. UPS said in a recent earnings report that it intends to close 164 facilities during the initial 18 months, including 73 facilities by the end of June.

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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com