Pitney Bowes' former e-commerce logistics unit will lay off more than 1,200 employees in the next two months as it continues to wind down its operations.
The job cuts at Pitney Bowes Global Ecommerce, now DRF Logistics under the ownership of Hilco Global, impact workers at hubs it has used across the country to sort and ship parcels. A Worker Adjustment and Retraining Notification (WARN) Act notice for the company's closing Canal Winchester, Ohio, facility shows that package handlers, forklift operators, drivers and managers are among the people losing their jobs.
Global Ecommerce enacts layoffs across the U.S.
| Facility location | Layoff date | Number impacted |
|---|---|---|
| Monroe Township, New Jersey | Nov. 7 | 413 |
| Lockport, Illinois | Oct. 12 | 278 |
| Bloomington, California | Oct. 8 | 236 |
| Canal Winchester, Ohio | Oct. 8 and 12 | 165 |
| Stockton, California | Oct. 8 | 112 |
| Odenton, Maryland | Oct. 8 | 50 |
Global Ecommerce, along with Pitney Bowes' still-operating Presort segment, leveraged a network of about 45 operating centers through the U.S., according to a securities filing this year. The facilities enabled Pitney Bowes "to pick up parcels from retailer distribution centers and move them through our physical network."
The unit invested heavily in recent years to open automated facilities that use a mix of employees and robotic systems to handle volume efficiently, but it couldn't overcome sustained financial losses.
Lance Rosenzweig, Pitney Bowes' interim CEO and director, said in an Aug. 8 earnings call that the decision to shutter the Global Ecommerce unit "is in no way reflective of" the performance of its employees.
"We understand the impact of this decision on all involved," Rosenzweig said. "But after years of unsustainable losses, these changes are essential to preserving the company as a whole and positioning the remaining business segments for future growth. We are providing severance payments and outplacement services to the GEC team to ease their transition."
