Lululemon Athletica is laying off 128 employees as it permanently shutters its distribution center in Sumner, Washington, according to a Worker Adjustment and Retraining Notification (WARN) Act notice dated April 18.
Layoffs are expected to start June 21, according to the notice. A Lululemon spokesperson told Supply Chain Dive in an email that some of the employees will be retained and relocated to other facilities, including a recently opened distribution center in Los Angeles.
The retailer regularly evaluates its distribution network to help shape and support the future vision of the business, the spokesperson said.
“Following a review of our current infrastructure and the evolution of our fulfillment strategy, which includes a multi-year investment to increase overall capacity and support our growth, we have made the decision to close one of our smaller distribution centers … at the end of 2024,” they said.
Lululemon has been making efforts to advance its supply chain strategy. Last year, the retailer launched a program to increase supplier diversity in its sourcing operations. Later in May, Lululemon signed a multiyear partnership with an Australian tech company to help scale its circular efforts through textile recycling.
