UPS plans to lay off 404 workers in Commerce City in drive to automate facilities

At this time of year, delivery companies are normally in full hiring mode. United Parcel Service, however, has informed the state that it plans to dismiss 404 workers at its Commerce City package processing facility while it adds more automation equipment to the location.

“As a part of our Network of the Future initiative we’re modernizing our Commerce City facility at 5190 Ivy Street, Commerce City, and will temporarily close half of the facility on Jan. 15, 2025,” company spokesman Tom Lopez said in an emailed statement.

UPS is working to place as many dislocated employees as possible in other positions and providing other support, the statement said, adding that the upgraded facility should fully reopen in 2026. The company said service to Denver customers won’t be impacted during the transition.

Of the 404 workers, 401 are on the package processing side and three are revenue recovery employees, Lori Cruz, a human resources executive with UPS, informed the Colorado Department of Labor and Employment in a Worker Adjustment and Retraining Notification Act or WARN letter.

Union employees, who are represented by the International Brotherhood of Teamsters Local No. 455, will have bumping rights, meaning they can apply for other available positions within the company.

UPS executives announced in late March that the company planned to close 200 of its hubs across the country under its Network of the Future plan, which seeks to automate more package processing facilities and save $3 billion in costs by 2028.

“Network of the Future is targeting all activities for automation within our four walls,” Nando Cesarone, president of the company’s U.S. operations, told investment analysts in March. “These building consolidations and automations yield real savings. For example, we’ll have fewer feeder runs. We’ll be able to eliminate both a.m. and p.m. ground and air feeds in many, many locations.”