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UPS closing operations in three states as downsizing spreads

Network reorganization results in at least 62 job cuts

Eric Kulisch
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UPS is closing a day shift in Dallas and a facility in Wilmington, North Carolina, as it looks to realign facilities with lower volumes. (Photo: UPS)
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Key Takeaways:

  • UPS is conducting layoffs across multiple facilities (Dallas, Pocahontas, Wilmington) as part of a larger network restructuring plan.
  • This restructuring aims to consolidate facilities, reduce excess capacity, and increase automation to improve efficiency and lower costs.
  • The company is eliminating approximately 200 sortation centers over five years and anticipates needing 20,000 fewer workers.
  • While offering some employees transfers, UPS is also implementing a voluntary separation package for drivers, although uptake has been low.
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(Updated at 2 p.m. ET)

UPS continues to lay off workers as it moves forward with a strategy of consolidating parcel distribution facilities to reduce excess capacity. The latest job cuts are in Dallas, Texas; Pocahontas, Arkansas; and Wilmington, Ohio.

The integrated parcel logistics company notified the Texas Workforce Commission last week that it plans to release 62 workers at its Dallas facility on Monroe Drive. Layoffs began Aug. 5. 

A UPS (NYSE: UPS) spokeswoman told The Dallas Express, which first reported on the workforce reduction, that the jobs were expendable because the company is eliminating a day shift at the facility as part of a major network reconfiguration aimed at eliminating 200 sortation centers over five years and deploying automation to improve productivity.

The delivery giant on Aug. 8 closed a parcel facility in Pocahontas, Arkansas, spokeswoman Karen Tomaszewski Hill told FreightWaves. She did not have information on how many jobs are impacted.

“We are working to place as many employees as possible in other positions. We will work with those who may be impacted throughout the process to provide support,” she added.

Meanwhile, the News Journal in Wilmington is reporting that UPS will close a facility on U.S. Route 68 on Sept. 23 as part of the nationwide culling process, which includes evaluating utilization and automation levels. Packages will instead route through a more modern facility that can process more volume. 

UPS expects most Wilmington employees will transfer to another nearby facility, though the company has not said which one. It’s unknown how many people are employed at the Wilmington, Ohio, location because UPS doesn’t release employee counts for individual facilities, the News Journal said. 

Meanwhile, the Atlanta-based courier laid off 99 workers at a facility in Charlotte in early May, according to a notice filed with the North Carolina Department of Commerce. In July, it disclosed plans to temporarily close a parcel sortation center in New Orleans and lay off 177 personnel.

“While our building footprint is changing, our record of reliable pickup and delivery is not,” UPS said in a June 25 statement.

UPS has seen volume growth stagnate for nearly two years and expects volumes to decrease as it focuses on turning away low-margin business. Company management earlier this year said the decisions to phase out half of its business with Amazon and streamline infrastructure mean it will need 20,000 fewer workers.

The moves come as UPS seeks to eliminate more jobs by offering drivers a voluntary separation package. FreightWaves reported on Saturday that UPS has given van drivers more time to make a decision because the program is undersubscribed so far.

(Correction: An earlier version of this story incorrectly identified a closure in Wilmington, North Carolina. The facility is in Wilmington, Ohio.)

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Parcel 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 Eric is the Parcel 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 Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com