United Parcel Service (UPS) will temporarily close its Commerce City facility in January 2025, resulting in over 400 job losses, the company announced in a recent state filing. This marks one of Colorado’s largest layoffs of the year.
The Atlanta-based shipping giant informed state authorities of the closure last week, as required by the Worker Adjustment and Retraining Notification (WARN) Act. In its letter, UPS cited “changing business realities in our network” as the reason for the layoffs.
Workers at the Commerce City facility, located at 5190 Ivy Street, will lose their jobs on January 15, 2025, shortly after the peak holiday shipping season. The layoffs affect both union and nonunion employees. UPS workers are represented by Teamsters Local No. 455, an affiliate of the International Brotherhood of Teamsters. Neither UPS nor the union provided a comment by press time Monday.
The move aligns with UPS’s broader restructuring under its “Network of the Future” initiative, announced in March. The company aims to automate operations, consolidate facilities, and cut labor costs. Industry publication Supply Chain Dive reported UPS plans to close up to 200 facilities as part of the strategy.
Nando Cesarone, UPS executive vice president and president of U.S. operations, previously told investors that the company is targeting $3 billion in savings by 2028.
“Network of the Future is targeting all activities for automation within our four walls,” Cesarone said. “These building consolidations and automations yield real savings. For example, we’ll have fewer feeder runs. We’ll be able to eliminate both a.m. and p.m. ground and air feeds in many, many locations.”
As UPS moves forward with its cost-cutting plan, more closures and job reductions are expected nationwide.