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UPS to temporarily shut New Orleans parcel center, dismiss workers

Move is part of network optimization strategy

Eric Kulisch
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UPS has notified workers at a New Orleans facility that they will lose their jobs as the company downsizes its physical footprint. (Photo: UPS)
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Key Takeaways:

  • UPS is temporarily closing a New Orleans parcel sortation center, resulting in 177 layoffs.
  • The closure is part of a larger UPS initiative to streamline its network and improve efficiency amid declining parcel volumes.
  • The facility is expected to reopen next year, and UPS aims to relocate affected employees.
  • This action follows previous closures and is part of a plan to eliminate 200 sort centers over five years.
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UPS will temporarily close a parcel sortation center in New Orleans and lay off 177 personnel, according to a company notice filed with the Louisiana Workforce Commission. 

The move is part of a multi-year campaign to streamline the company’s shipping network and improve efficiency as domestic parcel volumes decline. All but 13 workers at the 5700 Morrison Road facility are part-time employees.

NOLA.com, a news platform for several local media organizations in New Orleans, posted a story about the closure on Tuesday. A UPS (NYSE: UPS) spokesperson told the outlet that the Morrison Road facility will reopen sometime next year and that the company will try to relocate as many workers as possible to other locations. 

Last October, the company closed its adjacent customer service center. 

UPS has previously said it plans to eliminate 20,000 workers as it scales back delivery activity for Amazon and consolidates. In March, UPS closed a package center in Portland, Oregon, until September 2026 so it can upgrade the facility to handle more package volume. 

UPS last year said it plans to eliminate 200 sort centers over five years and route parcels handled at those facilities to more modern ones. 

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

Write to Eric Kulisch at ekulisch@freightwaves.com.

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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