United Parcel Service (UPS) is set to reduce its package sorting operations and will be laying off employees at its facilities in New York, Rhode Island, and Virginia, responding to ongoing volume declines.
The company has confirmed that the night sortation shift at its Mechanicsville, Virginia, facility will cease operations this Saturday, according to spokesperson Jim Mayer. Further adjustments include the closure of the day sortation shift at the Warwick, Rhode Island, facility on April 2, and the termination of the night sortation shift at the Maspeth, New York, facility on May 10.
Mayer explained that UPS routinely assesses its operational needs and adjusts its network accordingly to align with volume demands. “This allows us to continue delivering industry-leading service while also maintaining competitive prices,” Mayer stated. While specific details regarding the number of employees affected by these changes were not disclosed by Mayer, Worker Adjustment and Retraining Notification (WARN) Act filings indicate that the Warwick facility’s closure will impact 130 employees, and the Maspeth facility’s shutdown will affect 66 workers.
Mayer emphasized the company’s commitment to its employees, acknowledging the significance of these changes. “Our employees are extremely important to us, and we understand the impact this may have on their families,” he said. “We will work with those who may be impacted throughout the process to provide support.” These upcoming closures are part of a broader strategy by UPS to recalibrate its network capacity in light of reduced demand, with similar adjustments being made at facilities in Connecticut, Maryland, Oregon, Kentucky, and Indiana.
According to Jeremy Tancredi, a partner in West Monroe’s Operations Excellence practice and a former UPS industrial engineer, these reductions primarily affect day sortation shifts. Tancredi noted that UPS typically adjusts its day sort activity based on capacity requirements, as these shifts are less critical for time-sensitive deliveries. He added that the volumes from closed day sorts could be redistributed to other operational shifts.
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