UPS plans to temporarily close its Swan Island package facility in Portland, Oregon, and lay off up to 244 workers as the integrated logistics carrier moves forward with consolidating and automating facilities under a network optimization strategy announced a year ago.

The parcel giant on Friday notified Oregon authorities that it will close the facility on June 20 and release 244 unionized workers, according to the Office of Workforce Investments.

That figure represents the total number of employees who could potentially lose their jobs, not the total number of workers at the site, UPS (NYSE: UPS) spokesperson Karen Tomaszewski Hill said in an email exchange.

“We are working to place as many employees as possible in other positions. Our employees are extremely important to us, and we understand the impact this may have on them and their families. We will work with those who may be impacted throughout the process to provide support. We expect the enhanced facility to reopen in 2026,” she said.

Kara Deniz, a spokesperson for the Teamsters union, said the facility is slated to reopen in September 2026.

UPS last year said it plans to eliminate 200 sort centers over five years and route parcels handled at those facilities to more modern ones. Warehouses outfitted with smart package technologies – autonomous guided vehicles, automated sort systems and systems that prioritize processing for specific customer requirements without manual intervention – have 30% to 35% more effective capacity than a traditional warehouse building. Consolidating package flow into fewer facilities will reduce the amount of time packages need physical handing and improve asset utilization, according to management.

As of March 2023, the company had 63 automation projects on the table for completion by 2028.

UPS last April closed a package terminal in Portland and laid off 331 workers because it wasn’t busy enough.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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