Amid the partial, temporary closure of an Oklahoma City United Parcel Service facility, more than 300 employees will be laid off early next year, according to the Oklahoma Department of Labor.
Due to “changing business realities” in the corporate network, all 304 employees based at 901 S Portland Ave. workers, are affected by layoffs, according to a Worker Adjustment and Retraining Notification (WARN) issued by UPS. A WARN notice is given to employees 60 calendar days before plant closings or mass layoffs involving 50 or more employees or 33% of the workforce required by employers with 100 or more employees under federal law.
“As part of our Network of the Future initiative, we are modernizing our UPS facility in Oklahoma City,” said UPS spokesman Brian Hughes. “This temporary, partial closure will not impact customer service, and we have plans to continue serving the Oklahoma City community.”
The layoffs in Oklahoma involve 286 HUB employees, 15 pre-loaders, 1 parcel clerk and 2 revenue recovery employees, and will impact both union and non-union employees. The Georgia-based employer issued the notice to employees on November 18 after notifying staff three days earlier. The layoffs will take place on January 15.
David Crow, spokesman for the Oklahoma Employment Security Commission, said his agency continues to work with the Atlanta-based company as the issues evolve.
“We are working closely with UPS headquarters to determine next steps,” Crow said.
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Garsen Hansen, director of UPS’s HR business partner, which issued the WARN notice, could not be reached for comment.
UPS opened a new branch in Oklahoma City at 8825 N Interstate 35 about a year ago, intended to complement its Shawnee, Stillwater and Portland Avenue locations. However, in April the company announced plans to close about 200 U.S. facilities. However, no closures were announced in Oklahoma at the time.
The mass layoffs and nationwide closures come at a time when UPS is facing legal challenges.
United Parcel Service will pay a fine of up to $45 million for incorrectly valuing a business unit, according to the U.S. Securities and Exchange Commission.
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According to the SEC, UPS “misrepresented its earnings because it failed to follow generally accepted accounting principles (GAAP) in valuing one of the worst performing companies.”
It is unclear if this is related to the layoffs and possible closure of facilities in Oklahoma.
Contributions: Reuters
This article originally appeared on Oklahoman: UPS plans mass layoffs and partial closure of Oklahoma City facility
