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UPS Shuts Down Facilities and Accelerates Layoffs Amid Network Restructuring and Automation Push

UPS Shuts Down Facilities and Accelerates Layoffs Amid Network Restructuring and Automation Push

Logistics News
12-Aug-2025
Source: JCtrans

As layoffs spread, logistics giant UPS shuts down related operations in three states.


UPS is closing operational facilities in Dallas, Texas; Wilmington, North Carolina; and Pocahontas, Arkansas, as it seeks to realign underperforming plants.


UPS continues to reduce its workforce, advancing its strategy to consolidate package delivery facilities and reduce excess capacity. The integrated parcel logistics company notified the Texas Workforce Commission last week that it plans to cut 62 jobs at its Dallas facility on Monroe Avenue, effective August 5.


A UPS spokesperson told the *Dallas Morning News* that these jobs are expendable as the company eliminates the day shift at that facility. This move is part of a major network restructuring aimed at eliminating 200 sorting centers over five years and deploying automation to boost productivity.


Spokesperson Karen Tomaszewski Hill stated that the delivery giant closed a package facility in Pocahontas, Arkansas, on August 8. "We are working to place as many employees as possible in other roles. We will work with and support those who might be affected throughout the process," she said.


Meanwhile, the *News Journal* in Wilmington reported that UPS will close a facility on US Highway 68 on September 23. This closure is part of a nationwide consolidation effort involving assessments of utilization and automation levels. Instead, packages will be routed through a more modern facility capable of handling higher volumes.


UPS anticipates that most Wilmington employees will transfer to another nearby facility, although the company has not specified which one. According to the *News Journal*, it's unclear how many people the Wilmington facility employs, as UPS does not disclose staffing numbers for individual plants.


The Atlanta-based delivery company also laid off 99 workers at a Charlotte, North Carolina facility in early May, according to a notice filed with the state's Commerce Department.


In a June 25 statement, UPS said, "While our footprint is changing, our reliable record of pickup and delivery has not changed."


In July, the company revealed plans to temporarily close a package sorting center in New Orleans and lay off 177 workers. [Logistics giant announces job cuts!]


UPS's volume growth has stagnated for nearly two years and is expected to decline as it focuses on abandoning low-margin business. Earlier this year, management stated that the decision to phase out half its business with Amazon and streamline infrastructure meant it would need to reduce its workforce by 20,000 employees.


This move comes as UPS attempts to cut more jobs by offering voluntary separation packages to drivers. Media reports indicate UPS has given delivery drivers more time to decide because sign-ups for the program so far have been insufficient.

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