UPS closing operations in three states as downsizing spreads

(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, and Wilmington, North Carolina.

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 location because UPS doesn’t release employee counts for individual facilities, the News Journal said.

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.

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

In July, it disclosed plans to temporarily close a parcel sortation center in New Orleans and lay off 177 personnel.

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.