Geodis will lay off 107 employees at its Kutztown, Pennsylvania, facility on or about July 31, according to a Worker Adjustment and Retraining Notification (WARN) Act notice.
The logistics provider cited clothing retailer Everlane’s decision to move operations outside the U.S. as the reason behind the move in a March 8 notice to officials.
The majority of workers affected are material handlers, Geodis told Supply Chain Dive in an email. The company added that it "will make every effort to assist these individuals in their transition to new job opportunities" and provide severance to those unable to find another position within the company prior to the layoff date.
"We are deeply grateful for the continued support of the people and leadership of the Kutztown area and remain committed to the long-term health of our local operations that serve a diverse base of customers within the region," Geodis said.
Everlane is moving its sole distribution center from Kutztown to Canada, the company said in an emailed statement. It said it provided "ample notice of this decision to Geodis" and will work with the logistics provider to support a smooth transition.
"This decision was made as part of our ongoing review process of operations to continue to ensure efficiency and provide the best experience for our customers," Everlane said. "We approach any change of this magnitude methodically, assessing the benefits of the business, planet, and the people involved in each step of the process.”
Clients changing operations or moving them to a different location is a reoccuring reason behind mass layoffs in the contract logistics space. CEVA Logistics, for example, will lay off workers at its Nashville campus in response to changes from its customer. The customer’s name was not disclosed.
Customer decisions were also the reason behind two mass layoffs Geodis conducted last year impacting a total of 362 employees. Both layoffs, which affected the same facility in Columbus, Ohio, were a result of clients DSW and GOAT Group deciding to move elsewhere on the East Coast.
