Express parcel giant Amazon has confirmed the upcoming closures of two warehouse facilities in California, a move that will impact more than 300 employees.
The decision not to renew leases at the warehouses in Irvine and West Sacramento was revealed by Amazon spokesperson, Sam Stephenson.
The closure of the Irvine facility, scheduled for November 7, will result in the layoff of 162 employees according to a California Worker Adjustment and Retraining Notification (WARN) notice issued on September 9.
In West Sacramento, 159 employees will lose their jobs when the warehouse shuts down on October 30, according to a separate WARN notice.
Amazon's decision is part of an ongoing evaluation of its logistics network to ensure that it aligns with the company's business needs.
“We continuously evaluate our operations to make sure they fit our business needs and improve both employee and customer experience,” Stephenson stated.
Although the closures will lead to significant layoffs, Amazon has expressed a commitment to assist affected employees by offering them new opportunities within the company.
Employees will be encouraged to apply for positions at nearby fulfilment centres and other facilities within the Amazon network.
The closures come amidst a period of re-evaluation for the e-commerce giant, as it continues to fine-tune its logistics and supply chain in response to fluctuating consumer demand and changing market conditions.
Despite these shutdowns, Amazon remains one of the largest employers in the US and continues to operate a vast number of fulfilment and delivery centres across the country.
The company’s decision may reflect a broader trend of businesses optimising their operations in light of the challenges posed by the global economy, supply chain disruptions, and evolving retail landscapes.
While no specific reasons for the closures were provided beyond the need for operational efficiency, these adjustments underscore the volatile nature of the logistics and warehousing sector.