GXO Logistics will cease operations at two Texas facilities where it provides services for Pepsi, according to a Worker Adjustment and Retraining Notification Act notice dated Oct. 10.
Operations at the facilities in Lancaster and Dallas will end by Dec. 10. All 262 workers will be laid off, including 206 employees in Lancaster and 56 employees in Dallas, according to a list of WARN letters.
A GXO spokesperson told Supply Chain Dive that its customer served by the facilities “made a business decision to change its operations.” Most of the 262 employees will be transferred to the new operator, while the rest will move to other GXO operations in the Dallas area.
In July, GXO also announced it would lay off 144 workers at a facility in Wisconsin after its customer made the decision to relocate its warehousing operations to northern Kentucky.
GXO recently passed its one-year anniversary of becoming a publicly traded company following its spinoff from XPO Logistics. CEO Malcolm Wilson said in an August earnings call that the company set a quarterly record in Q2 for the highest-ever level of new business wins. Quarterly organic revenue growth hit 20%, another record.
PepsiCo did not respond to a request for comment on who will be the new operator of the facilities.
