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UPS to Close Three Facilities in Pennsylvania Amid Reorganization

UPS is modernizing its operations with significant facility closures.

News Summary

UPS has announced the closure of three facilities in Pennsylvania as part of a nationwide reorganization effort. This decision will impact local economies and result in significant job losses. The closures align with UPS’s strategy to modernize its infrastructure and reduce costs, including a major reduction in their partnership with Amazon. This is part of the company’s largest network reconfiguration in history, affecting 164 operations across the U.S. and leading to approximately 20,000 job eliminations by year-end.

Pennsylvania is set to experience significant changes as UPS announces the closure of three facilities across the state, part of a larger nationwide effort to reorganize its operations. This strategic move comes amid a broader initiative aimed at modernizing UPS’s infrastructure and streamlining efficiency.

The three facilities earmarked for closure include:

1821 S. 19th St. in Swatara Township, near Harrisburg.
2006 River Road in Plum, Allegheny County, near New Kensington.
2129 Rockdale Lane in Stroud Township, near Stroudsburg.

This decision is part of the largest network reconfiguration in UPS’s history, which will see a total of 164 operations and 73 buildings closing across the United States by the end of June. This comprehensive restructuring effort is expected to result in the elimination of approximately 20,000 jobs by the close of the year.

Approximately two-thirds of the affected facilities are located on the East Coast. This marks a continuation of the company’s recent trend; UPS closed 11 facilities in the previous year as part of earlier restructuring initiatives.

At the core of these changes is UPS’s decision to significantly reduce its partnership with Amazon, decreasing deliveries for Amazon’s fulfillment centers by over 50% by June 2026. The volume being cut consists primarily of outbound deliveries from Amazon’s fulfillment centers, which UPS has deemed unprofitable. However, UPS will retain profitable services related to Amazon, including returns and seller fulfilled outbound services.

In conjunction with job cuts and facility closures, UPS plans to enhance productivity through increased automation. This strategy aims to reduce reliance on labor and lower capital costs. Overall, the reconfiguration could lead to approximately $3.5 billion in cost savings for the company.

As of the latest update, the Pennsylvania Department of Labor & Industry had not received any notifications regarding the impending layoffs. It is noteworthy that UPS ranks as the sixth largest employer in Dauphin County, according to data from the Pennsylvania Department of Labor & Industry.

While specific numbers regarding employment at the closing facilities have not been disclosed, UPS has expressed commitment to assist impacted employees wherever possible, seeking to place them in other positions within the company.

This reconfiguration initiative underscores the ongoing challenges and changes in the logistics industry, particularly as companies adapt amid shifting market demands and pressures. UPS’s decision reflects larger trends within the sector, as organizations reevaluate their operational strategies in response to evolving economic conditions and partnerships.

The closure of these facilities is set to have a considerable impact on the local economies where they are situated. As UPS moves forward with its strategic reorganization, the focus will be on operational efficiency and cost management while considering the needs of its workforce and the communities it serves.