Shipping and logistics company DHL has announced that it plans to close a package handling facility in response to shifting distribution needs in California.
Tariffs are doing quite a number on the logistics business. With ports empty and vehicle costs increasing, the changing economic situation in the US is having a domino effect on businesses across the country.
Now, one of the biggest shippers in the world is laying off hundreds and shutting down facilities because of the changing tide.
DHL Lays Off 364 Employees in California
According to a Worker Adjustment and Retraining Notification (WARN), DHL will be laying off 364 employees from a package handling facility in Ontario, Calfironia that it will eventually close down.
First reported by the Orange County Register, the WARN explained that the soon-to-be redundant roles included general manager, inventory control supervisor, training supervisor, inventory control clerks, mechanics and order filler pickers.
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DHL informed employees and the public that these layoffs would start taking place between July 1st and August 31st.
Why Is DHL Laying Off Employees?
DHL has been pretty quiet about the specific reasoning behind the layoffs, although they did admit that one of their clients, who shall remain nameless, is switching up its own distribution plans in 2025.
“DHL Supply Chain has been informed that one of its customers will be relocating a part of their distribution operations. As a result, the warehouse facility that supports their operations in Ontario, California, will begin phasing down July 2025 and will close August 2025.”
DHL was very specific that it was “not at liberty to disclose information about its customer’s operations” and would, therefore, not provide any further comment.
Other Shippers Laying Off Employees
Given the tumultuous times in the logistics industry — from tariffs to driver shortages — DHL hasn’t been the only company that is downsizing some of its business.
Most notably, UPS announced massive layoffs, letting go of 20,000 employees and shutting down 73 facilities across the US in late April. The company specified that this was in direct response to its Amazon shipping business being reduced by 50% since the tariffs were put in place.
Suffice to say, the logistics industry is in for complicated if not rough times in the foreseeable future, and even big hitters like DHL and UPS are not immune.
