UPS is cutting a package sortation shift at an Indianapolis facility on Feb. 16 amid slumping demand.
The facility, located on 81st Street in Indianapolis, joins the company's Centennial ground hub in Louisville, Kentucky in closing its day sort operations next month, according to UPS spokesperson Jim Mayer. He did not say how many Indianapolis employees would be impacted by the day sort's closure, but many of the affected employees will be able to move to other positions.
Package sorting operations are being reduced “at a few UPS facilities” overall, Mayer added.
“We often evaluate our operations and flex our network to meet volume demands,” Mayer said in an email to Supply Chain Dive. “This allows us to continue delivering industry-leading service while also maintaining competitive prices.”
UPS weathered volume declines in recent quarters as home delivery demand cooled off from its pandemic-driven heights and some shippers moved packages elsewhere during the company's contract negotiations with the International Brotherhood of Teamsters. The company has been leaning more on AI and machine learning to make its network more flexible in the face of demand swings.
