UPS will lay off 404 workers at its Commerce City facility in Colorado as part of a broader effort to increase automation and reduce costs, the company announced in a letter to state officials. The layoffs, set to take effect on January 15, 2025, will impact both union and non-union employees.
The company cited “changing business realities” as the reason for the job cuts, according to a Worker Adjustment and Retraining Notification (WARN) letter obtained by Denver 7 News. The layoffs include 401 package processing employees and three revenue recovery workers at the UPS facility located at 5190 Ivy St.
The move is part of a long-term strategy to enhance efficiency through automation, which UPS expects will save $3 billion by 2028, according to reporting from The Denver Post.
Union employees represented by the International Brotherhood of Teamsters Local No. 455 will have bumping rights, allowing those with seniority to apply for other positions within the company, the letter stated.
UPS notified both the Colorado Department of Labor and Employment (CDLE) and Commerce City Mayor Steve Douglas of the decision last week. The WARN Act requires businesses to give employees a 60-day notice before implementing mass layoffs.
The layoffs at UPS reflect a growing trend of automation replacing traditional jobs across various industries. While automation increases operational efficiency, it also raises concerns about job security for workers in logistics and other sectors.
As the transition progresses, affected employees may seek opportunities elsewhere within UPS or in the broader job market. The company has not yet disclosed specific plans for assisting displaced workers beyond standard bumping rights for eligible union members.