Rite Aid has confirmed it will lay off 241 employees at its distribution center in Woodland, California, as outlined in a Worker Adjustment and Retraining Notification (WARN) Act notice issued on January 23. The layoffs are scheduled to commence in the first week of March, leading up to the closure of the facility located at 1755 East Beamer St. on May 12. Although the closure is permanent, a select number of staff will remain temporarily to assist with the winding down of operations.
In a statement to Supply Chain Dive, Rite Aid explained, “Following a thorough evaluation of our distribution network, we have reached the difficult but necessary decision to close our distribution center in Woodland, California, and shift operations to our Lancaster, California, facility starting in May. This move is aimed at optimizing support for our stores and achieving greater operational efficiencies.”
The layoffs will affect a range of positions, including operations managers, forklift operators, and other warehouse personnel. Rite Aid has also indicated that employees who continue working through their transition period will be offered severance packages and support for finding new employment opportunities.
This restructuring is part of the drugstore chain’s broader operational overhaul as it navigates through bankruptcy proceedings. After filing for bankruptcy in October, Rite Aid received court approval to ensure payment to its critical suppliers and vendors. Additionally, the company is preparing to close its Wilsonville, Oregon, distribution center in April, with plans to transfer those operations to a facility in Washington.
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